AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
.jpg)
Highlights
- More Afghan citizens are using cryptocurrencies as the value of the local currency plunges.
- Afghanistan is among the top 20 countries using digital currencies.
- However, the new Taliban rulers are yet to decide on crypto use.
The latest craze for cryptocurrencies in Afghanistan is raising concern in some western capitals. However, for Afghan people, cryptocurrencies seem to be the safest bet amid the country’s political turmoil and plummeting economy.
Cryptocurrency transactions continued after the Taliban wrested power last month. Afghans’ eagerness to embrace digital coins comes at a time when most investment options have dried up amid various challenges.
Source: Pixabay.
Western Worries
So, why are Western countries worried over the growing use of cryptocurrency in Afghanistan? According to a former US security official cited by the Wall Street Journal, if the Taliban decides to adopt digital currencies, it can easily circumvent the economic sanctions imposed by the western countries.
The increased use of digital coins in Afghanistan has pushed up the country’s ranking to the top 20 among 154 nations adopting cryptos, said a report published by the crypto analytics firm Chainalysis in August.
Other countries in the top 20 include the US, Russia, and China.
The crypto surge in Afghanistan coincided with the US exit from the country, suggesting Afghans might be seeing crypto investments safer than parking their savings in a bank account at the time of Taliban rule, say experts.
Besides, the process is hassle-free. People can easily download the crypto applications on their mobile phones and trade, they added.
Also read: Bitcoin Uses More Electricity Than Many Countries: How Is that Possible?
Moreover, many Afghan banks were closed as foreign help stopped, and western financial organizations stopped transactions. The US also has stopped dollar shipments, leading to a sharp drop in the currency value. Some traders claimed that informal hawala transactions also were disrupted, WSJ reported.
As such, digital currencies seem to be a viable option for some Afghans. Residents living abroad could send money back to their families via cryptocurrency, which can then be exchanged with hard currency.
