Cryptocurrency use has seen massive growth in Palestine, amid the conflict in the region. This is used for facilitating cross-border transactions mostly, even though there are skeptics on cryptocurrency offering solution to the need of the Palestinians.
Cryptocurrency Usage in Palestine
Palestinian communities located along the Gaza strip and the West Bank has seen a high rate of cryptocurrency usage in recent times, and it has virtually become a lifeline to its occupant.
According to Ahmed Ismail, a financial analyst in Gaza, he stated that there are at least 20 unofficial exchanges in the area, that deals in cryptocurrency transactions for the populace. Ismail also noted that he has helped over 30 clients use Bitcoin to purchase investments abroad, such as stocks.
So also, a currency dealer in Gaza, named Mohammed also noted that in the last four years he had helped an average of 50 families in a month to purchase an average of $500 worth of cryptocurrency to send abroad or for shopping.
The Palestinians see Bitcoin as cheaper, safer, and quicker means of transaction. The Bitcoin wallet is seen as an alternative to a bank account because the local banks are nonfunctional.
The Palestinians very much appreciate cryptocurrencies because of the peer to peer features it offers, which is censorship resistant. Third-party influence or distribution cannot affect a transaction made via cryptocurrency; this makes it more appealing because of the region’s crisis with the global economy and Israel. Palestinians supporters in the west have borne the brunt of censorship as their bank accounts were closed for sending money to Palestine.
Also, gateway payment system such as PayPal is unavailable in Palestine; this makes cryptocurrency the best option for entrepreneurs in the area.
Cryptocurrency Adoption By Countries and Skeptics On Palestinians Adoption Of Cryptocurrency
Palestinians adoption of cryptocurrency joins the trend of cryptocurrency adoption in the world today. Venezuelans, Turks, Iranians, Zimbabweans among others have taken to cryptocurrency in mass. This is trending in those countries because of hyperinflation these countries are experiencing. In such cases, cryptocurrency serves as the best means of value storage and means of transaction.
Palestine is not experiencing hyperinflation neither does its people have a national currency like other countries that have adopted cryptocurrency.
However, the subject of cryptocurrency as a lifeline for the Palestinians has come under scrutiny because of the economic condition of the region which makes access to fiat currency more critical than cryptocurrency.
Inadequate power supply and even weak traditional banks that struggle to transact with the outside world makes cryptocurrency adoption a problem.