ALBAWABA- In the very center of what ranks among the protracted conflicts globally, cryptocurrencies serve as a lifeline toward achieving financial emancipation. Some people have criticized the use of crypto in advancing the Palestinian resistance. However, some view it as a beacon of hope that radiates with resilience even in hard conditions.
The tragedies of the current biggest bombing campaigns against Gaza in the 75 years of the conflict latest unfortunately resulting in thousands of deaths of innocent people, have brought up a tougher clampdown on the aid finances, making it incredibly tough for the Palestinian people to access funds for essential services like education and healthcare.
The Complexity of Gathering Financial Support
Hamas — a Palestinian militant group that governs the Gaza Strip — is considered a terrorist organization in the United States' eyes and others, this is under global scrutiny for being subject to various economic embargos and strictures. Subsequently, the Israeli occupation government has imposed sanctions on Hamas’s money source, such as the closure of banking accounts and blocking of all the accounts related to the fundraising.
Crypto : A Response to Stricter Sanctions
Ever since the emergence of crypto, The use of cryptocurrencies to raise funds and garner support has become a significant part of the Palestinian narrative. Palestinians have been relying on various cryptocurrencies to garner support for their cause, including turning to cryptocurrencies as a lifeline to acquire funds, even with Hamas, which is exploring this avenue to navigate international restrictions.
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Consequently to the tightening of international constraints, Hamas has resorted to digital money or cryptocurrencies that enable them to sidestep such limitations. Thanks to the cryptocurrency's partial anonymity, it is helpful in conducting transactions without the need to know one’s identity or location. This level of anonymity has become invaluable in circumventing economic sanctions and blockades imposed by the Israeli occupation government.
However, it remains unknown how much money Hamas has received in crypto, but there is proof that these funds were substantial enough. As noted in the Wall Street Journal, nearly $41 million worth of cryptocurrency funds have been remitted since 2020 to cryptocurrency addresses associated with Hamas and seized by Israeli authorities according to Dmitry Machikhin, the CEO of crypto analytics software BitOK. A separate analytics firm called Elliptic claimed that they tracked down another $94 million held by their militant partner in the Palestinian Islamic Jihad. The company commented, however, that it was unclear which part of such assets attributed to the group per se.
As per one Elliptic researcher—Arda Akartuna—Hamas and al-Qassam Brigades have notably succeeded in funding their campaigns through cryptocurrencies. It has been difficult to track these cryptocurrency activities as most of the transacting parties utilize one-time-use crypto addresses in case of individual donations or use anonymous agents who turn cryptocurrency into fiat currencies with no paper trail afterward.
Challenges
The use of crypto by Hamas has not been without setbacks as in its efforts to curb Hamas's sources of funding, has taken measures to block cryptocurrency accounts linked to fundraising on global crypto platforms such as Binance and stablecoin issuer Tether which recently announced it had frozen funds in 32 cryptocurrency addresses linked to "terrorism" and warfare in both Israel and Ukraine, and that it was working with Israel's National Bureau for Counter Terror Financing (NBCTF).
These actions represent just one part of the complex financial landscape in which Hamas operates, as they seek to maintain their resistance efforts in the face of adversity.
Lastly, Hamas’ employing of cryptocurrency and other financial strategies against the international sanctions indicates how resolute and smart they are. Though these methodologies possess their limitations, they point out that the wider debate should centre on the possible help of digital assets to support people with problems in the economy domain. Cryptocurrency can empower a situation as complicated like the Israeli-Palestine conflict.
