The history of Afghanistan is more than 5,000 years old. But in recent decades, the upheaval has been incredible. Many Afghans have fled the country since the Taliban came to power in 2021. Those who stayed are hopeful that their lives will improve with the help of decentralization and increased use of cryptocurrencies.
Everything has changed since the Taliban took power – from the people in control to the national flag, even the name of the country – the Islamic Emirate of Afghanistan.
Can crypto really help or is it a waste of time?
BeInCrypto (BIC) did an exclusive interview with Atiqullah Mohammadi. He is a local crypto dealer and trader. Mohamedi has been trading and exchanging crypto with fiat currency in Herat for the past two years. He told BIC about the challenges he faced for using the cryptocurrency.
“We cannot buy crypto from our bank accounts or credit cards because of the very high fees. We have to contact someone in other developed countries. Of course, this will come with additional fees, but much more than what our banks ask for. Less.”
In Afghanistan, if you want to buy crypto, you need to go to a local crypto dealer and trade some crypto for fiat. Accepted currencies are either the US Dollar or the Afghan Afghani. Withdrawals are the same – people cannot make withdrawals from their bank accounts. They still have to do business with a local crypto dealer.
Iran, Venezuela, Nigeria, Kenya and the Philippines have all faced recent financial crises. El Salvador formalized bitcoin as its national currency to avoid financial problems. But there is a huge difference. Afghanistan’s literacy rate is just 43%, according to data provided by the UNESCO Institute of Lifelong Learning. This means that about 21 million Afghans cannot read or write.
Afghan Secession: help from abroad
According to Mohammadi, “Many of my clients just receive crypto from their relatives abroad. They can’t get money using other services or sometimes the fees are too high. People send or receive money to/from other countries. don’t want to.”
With the rise of the Taliban, money transfer services such as Western Union ceased their mission in Afghanistan. This makes cryptocurrencies the ultimate choice for many people with ideal transaction speeds and very low fees.
Mohamedi started a small crypto academy a few months back. He said, “My friends and clients are more than happy to teach others about crypto, at least for transacting around the world, if not trading. With the help of decentralization, we can hope that the world we live in. Can come back and build their economy from zero. It’s not all about trading cryptocurrencies. Blockchain technology has unlimited use cases. Taliban should make it their priority because if they don’t do it there will be a lot It might be late.”
the other side of the coin
Currently, Afghanistan is in the midst of a financial crisis and the price of basic goods for the local people is rising so fast that it is not possible for the local people to keep up with it. The country is on the verge of collapse and it is reported that people are selling their children for money and food.
The Taliban have not yet announced any regulations regarding crypto. But local users are pessimistic. A crypto trader who did not wish to share his name told BIC that “they” [the Taliban] It doesn’t have the necessary literacy and knowledge to rule the country.” He added, “The Taliban can ban the use of crypto just because they don’t know what it is. They can take action before asking or researching it.”
In addition, the Taliban have banned the trading of fiat currencies such as the US dollar, Iranian toman, Pakistani rupee and some others in the local fiat exchange markets to control inflation. The owner of a local fiat exchange said, “The Taliban may even fire at anyone trying to take the US dollar out of the market.”
How active are Afghans in the crypto industry?
Afghanistan was ranked 20th in the 2021 Global Crypto Adoption Index by Chainalysis among 154 countries. Mohammadi said, “It makes me more than optimistic and happy. It seems that some of the 43% of literates use their time and knowledge wisely. Although most people get involved in crypto because they see that Somebody makes some money in this, there is a high possibility that our people and government can use this technology for a much bigger purpose.”
Ruholamine Hakshanas is a crypto-journalist and businessman. He said, “I see crypto as a window to economic freedom. Given that most Afghans do not have access to the banking system. And because of the set of exorbitant obligations that very few people can fulfill, They can’t access them even if they want to. Crypto is the best option. It can provide a means for the economically isolated people of Afghanistan to interact with the world.”
He continued, “Another important role for crypto inside Afghanistan is its use to transfer donations to those in need.” The Taliban have imposed sanctions on it by the US and the United Nations. “This has had an adverse effect on humanitarian aid provided by international nonprofits in the past. However, by using crypto, these organizations can overcome any hurdles and donate directly to those in need.”
Cryptocurrency adoption in Afghanistan is in its early stages. The question is, will the Taliban prove their commitment to the development of the country?
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