Report: Afghans Use Crypto to Curb Taliban"s Influence on Their Financial Well-Being
Afghan residents are reportedly acquiring digital assets that they use to preserve their savings and to diminish the ruling Taliban’s ability to affect their financial well-being. Since the militant group seized control, the value of crypto transactions per week has in some cases doubled, a Bloomberg report has said. Demand for Digital Currencies Surges
Demand for digital currencies in Afghanistan has reportedly surged as residents seek to pre-empt the possible seizure of their funds by the Taliban government. In addition, digital currencies are being used to curb the Taliban’s influence on their economic well-being.
As per a Bloomberg report, some Afghans are looking to buy stablecoins like tether because they are pegged to the U.S dollar. The report quotes one 26-year-old Afghan resident, Habibullah Timori, who backs assertions his countrymen are using digital assets to preserve savings. He said: Demand for cryptocurrencies is high. During other crises, people stored their cash and jewellery in the ground or under their pillows. This time, they’ve decided to keep it buried in crypto.
The report also cites another 26-year-old Afghan, Naser Ali, who claims to have converted $30,000 stashed in his safe to USDT. According to Ali, reports of the Taliban storming homes and confiscating Afghan citizens’ belongings was a key factor that compelled him to convert from fiat to crypto.
Further, in his remarks published in the report, Ali said he regretted not having known about cryptocurrencies sooner.
Residents Charged a Commission of 1.5% per Transaction
Meanwhile, since taking control of the country, the Taliban government has reportedly suspended secondary education for teenage girls. The group has also asked government employees to grow beards and has instituted gender segregation in amusement parks. Just shortly after the militant group toppled the previous government, the U.S. government blocked access to $9 billion in foreign exchange reserves.
While the return of the Taliban rule has led to a change in Afghan residents’ fortunes, it may have led to the surge in the volume of transactions handled by cryptocurrency exchanges. To illustrate, the report points to Maihan, a cryptocurrency exchange that now reportedly handles crypto transactions which are valued at around $400,000 per week. According to the report, this value is more than double what Maihan was handling prior to the Taliban takeover.
Despite the surging demand for cryptocurrencies, exchanges like Maihan say the U.S. sanctions on Afghanistan are making it difficult for residents to buy digital currencies. Further, residents buying from local crypto exchanges are charged a commission of 1.5% for every crypto transaction. Tags in this story crypto exchange, Digital Assets, Maihan crypto exchange, Stablecoin, Taliban crypto, Tether (USDT), US sanctions
What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Chainalysis: Crypto Gains Skyrocket Worldwide — Investors" Profit Grew 5x to $163 Billion in 2021 FEATURED | 21 hours ago Microstrategy CEO Dispels Rumor of Company Quietly Selling Bitcoin FEATURED | 2 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleLABEL Foundation Announces the Strategic Partnership With Polygon Studios to Launch Their Dapp on Polygon Mainnet Next articleStandard Chartered Bank Enters the Metaverse Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin