Bitcoin and other cryptocurrencies are being used by organizations all around the world looking to dodge American sanctions. Bitcoin is single-handedly helping the people of Venezuela carry on living, and now Hamas is looking to jump on the Bitcoin bandwagon to carry on building its army. It’s the first time the group has asked for financial support through cryptocurrencies, but it looks like crypto could be the only way the group has a future.
Cut Off from the Fiat World
Hamas has been labeled a terrorist organization by the US and Europe, leading the group to be cut off from the Swift network. This has left the organization to burn through cash reserves with little chance of drumming up any additional financing. Even cash donations from Iran can’t make it to the group due to the fact both have been banned from using Swift. US sanctions are starting to put out Hamas’s fire and cause the group to choke, but Bitcoin could be the group’s saving grace.
Looking at Other Options
For the time being, Hamas is using Bitcoin to raise funding and continue to operate. It has been asking its donors to start sending the cryptocurrency in a bid to skirt around US sanctions so it can continue its reign of terror. Due to its close ties with Iran, it could soon start accepting Crypto Rial in order to finance its operations, providing Iran launches its crypto soon.
America Stopping Terrorists Using Crypto
Cryptocurrencies have a somewhat murky history, and in order to prevent this history from spreading into current activities, America has passed a bill to stop terrorists using crypto for funding. Bitcoin is well known for its publicly traceable transactions, and if Hamas is using Bitcoin to fund itself, more companies and countries could quickly find themselves on terrorist watch lists. Hamas’s use of Bitcoin has played right into America’s trap and will expose top collaborators within the group and will give America more targets to go after.
While Bitcoin might seem like a good idea for illegal activities at first, upon deeper research it quickly becomes apparent that it’s a bad idea. If Hamas really wants to avoid US sanctions, it would be better off creating its own crypto like so many rogue nations have done and are looking to do.