Crisis-hit Afghanis turned to crypto for daily needs

The citizens of Afghanistan have reportedly turned to cryptos to surpass the financial crisis that struck past the Taliban’s occupation of their nation last August. From cash crunches to the closure of banks and other financial institutions in an economy that depends primarily on cash transactions, the list of problems was unending. With non-governmental institutions like SWIFT and the Union stopping operations, the only way out for them to transfer funds appeared to be cryptos.

Many Afghans are said to have turned to cryptocurrency trading to meet their financial needs after the Taliban takeover, and this has led the nation to gradually climb up the ladder regarding overall cryptocurrency adoption. In terms of peer-to-peer trade volume particularly, Afghanistan jumps to seventh place regarding cryptocurrency adoption.

For many Afghans, the time has laid bare the worst-case situation for a nation operating on legacy financial rails: A countrywide cash crunch, closed borders, steeply falling currency, and quickly rising prices of basic goods. In some ways, it is a perfect test case for the functionality of cryptocurrencies including Bitcoin.

According to a report, there are many advantages of using cryptos: Afghans feel the Taliban can take native assets with them without any risk. Intermediaries and smugglers who may steal or attempt to resell relief packages can be avoided if aid is provided directly via a digital transaction. Also, Humanitarian agencies trying to circumvent banks and confidentially avoid the Taliban can offer cash directly to those in need.

As for now, the Taliban hasn’t prohibited crypto trading in the nation. But that can change at a whim as the Taliban’s plan towards any policy has been disorganized.

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