We continue our previous material on a very interesting topic. You can read the first part here
Cryptocurrency in practice
The Afghan diaspora typically uses traditional money transfer services such as Western uniоn in exchange for high fees for sending money home, as only 15% of the population had their own bank account in 2017. Only 16% of Afghanistan’s population used the Internet that year. How should cryptocurrency work in such a country? It’s simple: you don’t have to be online all the time – you don’t need a bank account. With the appropriate applications, you can exchange a certain amount of Satoshi even on the local market.
Bibi Janie is one of the people using Bitcoin in Afghanistan. Through her Twitter account with nearly 22,000 followers, she spreads awareness about Bitcoin in Afghanistan and explains how the cryptocurrency can help circumvent sanctions imposed on Afghanistan. She has kept her savings in Bitcoin for years, but recently converted the cryptocurrency into cash to cover her daily living expenses. This was the only way to easily get cash due to sanctions.
Bibi Janey also discusses the role of the UN in the crisis in Afghanistan. “Currently, an economic war is being waged against us. Our only protection is Bitcoin, which cannot be controlled by international bankers, unlike the US dollar, which they use to starve us,” she says. There are official documents or statements on whether cryptocurrencies are allowed by the Taliban. There was no response from Afghanistan’s central bank, but Bibi Janie said that “the government treats all currencies equally, including Bitcoin.”
She also says that you can easily exchange any foreign currency at the bazaar. However, the new government is trying to promote the use of afghani. The previous government made cryptocurrencies illegal. Janey herself uses a traditional exchanger, called Sarafi, to exchange her BTC for cash. However, this is an exception as not every Saraf offers cryptocurrency exchange to be on the safe side. Janey says, on the one hand, the Taliban treats all currencies the same. On the other hand, Sarafis do not want to hang their crypto services on a big bell. Janie also regularly speaks highly critically of the West and the United States. She recommended that the Taliban use Bitcoin in the social network. And it’s not just Afghans who can use cryptocurrencies to avoid sanctions.
Political hell
Thus, the situation in Afghanistan is extremely difficult. While cryptocurrencies offer opportunities for people in crisis, they also pose risks. For women in particular, cryptocurrencies can offer a chance to retain some of their independence in an environment of limited rights. However, it is unclear how the Taliban officially views Bitcoin and cryptocurrency companies.
Afghanistan with its own CBDC? This will become a huge instrument of power in the hands of the Taliban. The question is whether the population will accept this money on a large scale.
In principle, cryptocurrencies open up additional opportunities. You just need to remember that this is not a panacea or a perfect solution. With them you can be more independent and with them you don’t need a bank account. And you can make decisions freely.
The political hell in Afghanistan probably won’t end anytime soon. Now people are starving, and women are fighting for their rights. There is a digital lifeline—at least when it comes to money. Everyone must decide for themselves whether to reach out to him. However, none of this is entirely plausible. Janey stated that on the one hand, the Taliban, who call themselves “the government,” will treat all currencies equally, on the other hand, the Sarafis do not want to hang their crypto services on big bells.
Afghanistan in numbers
With a population of about 40 million and an area of over 650,000 km2, Afghanistan is slightly larger than France. The form of government is a presidential republic. However, Afghanistan has a theocratic emirate, that is, a form of government in which religious principles form the basis of government. Following the collapse of the government in August 2021, Hibatullah Achundsada becomes the emirate’s head of state and leader of the Taliban, and Mohammed Hassan Achundsada becomes prime minister. The official languages are Pashto and Dari. Afghanistan’s gross domestic product (GDP) in 2020 was about $509 per capita. By comparison, Germany’s GDP in the same year was over $46,000.
