The people of Afghanistan are reportedly purchasing digital assets, which they are using to preserve their savings and reduce the Taliban ruling movement’s ability to influence their financial well-being. Since the militants seized control, the value of cryptocurrency transactions per week has doubled in some cases, according to a Bloomberg report.
Demand for digital currencies is on the rise
The demand for digital currencies in Afghanistan has reportedly increased dramatically as residents seek to preempt possible seizure of their funds by the Taliban government. In addition, digital currencies are being used to limit the Taliban’s influence on their economic well-being.
According to a report by Bloomberg , some Afghans are eager to buy stable coins, such as tether, because they are tied to the U.S. dollar. The report cites a 26-year-old Afghan resident, Habibullah Timori, who supports claims that his countrymen are using digital assets to keep their savings. He said:
The demand for cryptocurrencies is high. During other crises, people kept their cash and jewelry in the ground or under their pillow. This time they decided to bury them in cryptocurrency.
The report also cites a 26-year-old Afghan man, Nasser Ali, who claims to have converted $30,000 stashed in his safe into USDT According to Ali, reports of the Taliban storming homes and confiscating the property of Afghan citizens were the key factor that led him to switch from fiat to cryptocurrency.
Residents are charged a fee of 1.5% per transaction
Meanwhile, after taking control of the country, the Taliban government reportedly suspended secondary education for teenage girls. The group also required civil servants to grow beards and imposed gender segregation in amusement parks. Shortly after the militant group overthrew the previous government, the U.S. government shut off access to $9 billion in foreign exchange reserves.
While the return of Taliban power has changed the fortunes of the people of Afghanistan, it may have caused a surge in the volume of transactions handled by cryptocurrency exchanges. As an example, the report cites the Maihan cryptocurrency exchange, which reportedly processes cryptocurrency transactions worth about $400,000 per week. According to the report, this amount is more than double the amount Maihan processed before the Taliban takeover.
Despite the growing demand for cryptocurrencies, exchanges like Maihan argue that U.S. sanctions on Afghanistan are making it difficult for residents to buy digital currencies. In addition, residents who buy cryptocurrency on local exchanges are charged a 1.5% fee for each cryptocurrency transaction.
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