Palestinian Civilians Are Using Bitcoin More Than Terrorists

Experts say Hamas is now using bitcoin for cross-border fundraising at an unprecedented rate.

Terrorists aren't the only Palestinians using bitcoin.

Sources in Gaza told CoinDesk bitcoin is now more popular than ever among civilians, too.

Al-Safadi takes more than 70 percent of his monthly earnings in bitcoin.

"People there are starting to learn and ask about it. Palestinians are more using bitcoin [than ether] to make international transfers and to bypass Israeli control."

All Gazan sources agreed: most local bitcoin users are cashing out in fiat, not holding or using it for secondary business transactions.

On one hand, entrepreneurs are using bitcoin in slowly growing numbers thanks to the high demand for mobile financial services.

Such activities related to bitcoin are generally deemed noncompliant by local banks, as there's still a longstanding rift between Palestinian political factions in different territories.

A spokeswoman for the Bank of Palestine, which operates in both the Hamas-governed Gaza Strip and the Fatah-governed West Bank, told CoinDesk that the Palestinian Monetary Authority forbids institutional bitcoin transactions.

Most Palestinian bitcoin users are accepting bitcoin payments for freelance work, or remittances from family abroad, and cashing it out through local peer-to-peer groups.