Afghanistan is moving towards cryptocurrency, know why
The future of Afghanistan is uncertain with the US and its allies aimed at evacuating the Taliban-controlled country by August 31. The country is suffering from a cash shortage, a fast devaluation of the currency, and rising prices for basic goods, and this is where crypto comes in with citizens protecting their wealth, facilitating the distribution of humanitarian aid to refugees, and giving hope for the ones still in the country with the digital currency.
Afghanistan stands among the top 20 countries for global crypto adoption, a drastic step forward from last year’s report where it did not make it to the top 50. The metrics are based on total crypto activity, trading activity of non-professional users, and peer-to-peer exchange trade volume.
People have donated to the refugees through crypto. Many Afghans seeking to flee the Taliban regime have been aided by nonprofits raising funds in crypto to relocate families and provide emergency aid to the ones displaced. A series of NFTs launched by Jack Butcher, a consulting firm founder, raised more than $135,000, with the proceeds being extended to the humanitarian organization CARE.
Some Afghans view Bitcoin to be a crucial part of their future there. Farhan Hotak, a 22-year-old from the rural region of Zabul invested in crypto to protect it from economic instability. Janey Gak, a Bitcoin advocate, believes the country should adopt a Bitcoin standard to cut its reliance on central banking. She is also paying Afghans in donated BTC to translate crypto-related educational materials into Dari (one of the official languages of the country).
The rapidly flourishing crypto economy in Afghanistan has relieved Afghans to some extent from the volatility in the country’s fiat currency. The growth has highlighted Bitcoin’s utility as a store of value and crypto’s usefulness for cross-border transactions. With most of the population under the age of 25 and with a cell phone, crypto adoption is expected to grow with more tech-savvy citizens learning about the potential of digital currencies.