Aug 27, 2021 12:24
The current chaos in the country has the Citizens of Afghanistan turning to bitcoin and other cryptocurrencies, fearing their national currency will collapse. The situation has Afghans so worried it's citizens driving more and more to digital currencies such as bitcoin, to avoid collapse.
“In Afghanistan, we don’t have platforms like PayPal, Venmo, or Zelle, so I have to depend on other things” Farhan Hotak told reporters. The 22 year old fled to the border of Pakistan with his family of 10 last week.
Afghanistan’s unknown economic outlook...
Afghanistan is not the first place to fall into a state of anarchy and have its citizens turn to crypto. Recently Venezuelan citizens did the same as their country faced revolution.
With the US and allies gone, also gone are hopes of Afghanistan becoming a regional leader, it's now simply a place people avoid traveling to. Their struggles have only gotten worse over the last couple of years.
Citizens use Bitcoin and other cryptocurrencies to stay afloat...
Afghans are using digital currencies and decentralized applications like Bitcoin and Ethereum to stay afloat in a war-torn nation where the traditional economy has collapsed and the government is cutting the power to everyday citizens. Bitcoin, Ethereum, and other digital coins are helping people around the world stay off the grid by sending small payments or transferring money to each other without going through banks. Some even pay utility bills and buy groceries with bitcoin.
In a country that's seen endless war, the increasing difficulty of acquiring goods, and the importance of cryptocurrencies are two of the biggest factors driving the adoption of digital money in Afghanistan.
The digital age is here...
Afghanistan isn't like anywhere else. Today, if you need to buy something, you better know how to use your phone. While the youth drive the nation's tech revolution, all around them old buildings are left deserted or crumbling because they cannot afford to fix them.
Cryptocurrency saves the day...
Endless conflict is the last thing any once-prosperous nation needs. Tens of thousands have settled in Kabul and other major cities to escape war-torn regions such as Kunduz and Lashkargah.
As mass outflows of hundreds of thousands are seen as a financial drain by the state, citizens are finding new ways to get around the inflation that has begun to affect the Afghan economy. No one knows how minor or severe the economic situation may become as the Taliban implements their plans for the country. It's this unknown that sends people looking for stability.
A sign of how unstable Afghan citizens worry things may become - they see the famously unstable Bitcoin as the more stable alternative.
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Author: Matthew Miller
London Newsroom
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