Taliban (0 – 1) Cryptos! – The Afghans buy cryptocurrencies they use to preserve their savings. It also contributes to reduce the ability of the ruling Taliban to affect their well-being financial. Since the fundamentalist group took control of Afghanistan, the value of crypto transactions there has even doubled.
Demand for Cryptos Rises in Afghanistan
The demand for cryptocurrencies in Afghanistan has increased significantly. There are several reasons for this. Among other things, the Afghans are seeking to anticipate the possible seizure of their funds by the Taliban government. Moreover, they use digital currencies in order to limit the influence of the Taliban on their economic well-being.
According to a Bloomberg report, some Afghans are looking to buy stablecoins because they are pegged to the US dollar. The report quotes a 26-year-old Afghan resident, Habibullah Timori, as saying his compatriots use crypto-assets to preserve their savings.
“The demand for cryptocurrencies is high. In other crises, people have stored their money and jewelry on the floor or under their pillows. This time they decided to keep it buried in crypto. »
Habibullah Timori, a 26-year-old Afghan boy
The report also cites another 26-year-old Afghan, Naser Ali, who claims to have converted $30,000 hidden in his safe into USDT. According to him, when the Taliban stormed the homes and confiscated the property of Afghan citizens he felt compelled to switch from fiat to crypto. Additionally, in his remarks published in the report, Ali said he regretted not hearing about cryptocurrencies sooner.
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Even the Taliban Can’t Fight Crypto
Since taking control of the country, the Taliban government has reportedly suspended secondary education for teenage girls. The group also required government employees to grow beards and instituted gender segregation at amusement parks. Shortly after the militant group overthrew the previous government, the US government blocked access to $9 billion foreign exchange reserves.
The return of the Taliban regime has also caused a colossal change in the fortunes of Afghan residents. As a result, it has led to an increase in the volume of transactions processed by cryptocurrency exchanges. To illustrate this, the report points to Maihan, a crypto exchange that would now handle transactions for worth about $400,000 per week. According to Bloomberg, this value is more than double what Maihan managed before the Taliban takeover of Afghanistan..
Despite the growing demand for cryptocurrencies, exchanges like Maihan claim that theUS sanctions on Afghanistan make it difficult to buy digital currencies by the Afghans. In addition, residents who buy their cryptos on local exchanges are charged a 1.5% commission for each transaction.
Most Afghans are still waiting for cash and unemployment assistance. The United Nations has warned that the country will approach a “near-universal” poverty rate of 97% by mid-2022. Indeed, millions of people are on the brink of starvation in the country. In times of disaster and conflict, Bitcoin and cryptocurrencies can be a beacon of hope. But that’s not all ! They are also a good way to fight inflation.
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