Cryptocurrencies raised in popularity in Afghanistan amid US sanctions

The country’s residents believe that digital assets will be able to completely replace the destroyed banking system

17.03.2022 - 11:00

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What’s new? Afghans have increased their use of cryptocurrency since the Taliban (an organization banned in Russia) seized power. Against the backdrop of US sanctions, Afghan residents believe that digital assets will be able to completely replace the destroyed banking system. There is no other way to get non-cash money in the country, the BBC reports.

BBC’s material

How do Afghans live now? Farhan Hotik, 22, from the province Zabul in the south of Afghanistan, was left without cash after the country seized power. He was able to escape to Pakistan thanks to the availability of bitcoins on his crypto wallet. Hotik stated:

“After the Taliban takeover, crypto spread like wildfire over Afghanistan. There is almost no other way to receive money.”

How have sanctions affected the country’s economy? Afghan-born American Sanzar Kakkar, who created the HesabPay exchanger in 2019, stated that the “crypto revolution” in the country is the result of US sanctions against the current government.

Because of the liquidity crisis, the commercial banks stopped lending and customers could not withdraw their own money. Stablecoins pegged to the US dollar are also becoming popular in Afghanistan. Afghans convert the coins into local currency when exchanging money.

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