As the Afghans struggle to survive, many have resorted to cryptocurrencies like Bitcoin, Ethereum, and Litecoin to make both ends meet.
When the Taliban took over Afghanistan last August 15, 2021, this has pushed some Afghans to leave the country and for the less privileged, switch to survival mode. Now with the already grim situation, as if it wasn’t enough, an impending economic crisis is yet to follow. Banks closed and froze up, ATMs are not dispensing money, limited access to cash, closed borders, a local currency that’s been touching record lows, and rapidly rising prices of basic goods equals people becoming desperate.
Even before the takeover, Afghanistan has been barely making both ends meet. Heavily dependent on aid, as 40% of its GDP was from international aid according to World Bank, Afghanistan’s economy is struggling. Furthermore, it took an even greater fall down when the takeover was confirmed and Western powers, including the US and Germany, suspended foreign aid to the country alongside World Bank and the International Monetary Fund (IMF) halting payments since.
Now, how will they survive?
In an interview done by CNBC, Farhan Yohak, a 22-year old Afghan, said he has also been keeping a very close eye on his crypto portfolio on Binance.
“In Afghanistan, we don’t have platforms like PayPal, Venmo, or Zelle, so I have to depend on other things.”
“I have very, very, very limited resources to do anything. I’m interested in the crypto world, because I have earned a lot, and I see a lot of potential in myself that I can go further.”-Farhan Yohak, in an interview with CNBC
And Farhan is only one of the many individuals in Afghan who have recently learned and discovered the power cryptocurrency holds in this already-failing financial system we all were told to rely on. It’s getting clearer by the second that cryptocurrency is THE solution we all are looking for. Even though crypto-user Afghans are not that vocal about their using digital currencies but data suggests widespread adoption of crypto is definitely catching on.
Last year, Afghanistan’s crypto presence was so minimal that they were excluded from the 2020 ranking but this 2021, they landed 20th place out of the 154 countries in the Overall Crypto Adoption and 7th in P2P Exchange Trade Volume evaluation.