The latest surge in the crypto market has affected Afghanistan in several ways. Currently dealing with a financial crisis, the nation is somehow saved by the crypto spike.
Digital currencies are immune to international sanctions allowing the citizens to avoid the worst crisis yet. The decision made by the international financial institutions to suspend funding any Afghanistan banks and intermediaries are further making the economic revival close to impossible.
However, digital currencies and their decentralised nature made them invincible to economic challenges faced by the country.
With platforms like Gamdom crypto casino taking the next step to the surge of the industry, the country is rightfully moving towards the right track and making it easier for everyone to make transactions. How did the market improve the situation in Afghanistan? Here is the full story.
Given how atrocious the ongoing conflicts are, the Taliban knows that the world has no appetite to witness another conflict occur within Afghanistan. However, the takeover of the nation has only worsened as the days went by.
The crisis stemmed from the Taliban’s encroachment into the Afghan government which is now running the country. The Taliban coup also didn’t suit the diverse mosaic of Afghanistan’s political structure, which also contributed to its economic downfall as its economic sphere is heavily dependent on its leaders.
Selwin Hart, Special Advisor to the Secretary-General on Climate Action and Assistant Secretary General for the Climate Action Team, said ‘The situation is especially acute in settings already experiencing conflict and humanitarian needs, Afghanistan and the Sahel being two of the most prominent examples’.
From a series of events that led to the Taliban taking over the whole country, there was no question that the economy was going to fall as there was no stopping the leakage of its constant recession.
How crypto fits in the picture
The severity of the situation that escalated prior to the Taliban takeover has frozen most financial institutions’ accounts that blocked any transactions made by the citizens. This is where crypto comes into the picture.
Even before the crisis, the crypto market is starting to get accepted by several citizens after discovering its features. In fact, Afghanistan was ranked in the top 20 most users of crypto based on countries in 2021.
Given that crypto is still allowed, Afghans figured out a way to still make transactions through crypto exchanges to remit money. In a way, crypto became a life-saver that allowed people to still make use of a financial system despite the atrocious crisis.
What it means for the future of the crypto market
With how the crypto market aided Afghanistan’s dire situation, it’s safe to say that it is serving wonders for the rest of the world without the crises involved. Having said that, crypto is continuously evolving to become better and make it even easier and more convenient for users.
The use of blockchain also proved how efficient it is especially when used on a daily basis. With more coins released in the market people will have more options in the future.
Beyond the humanitarian objective of providing means of transactions during trying times in Afghanistan, the use of crypto is also becoming more popular in the country’s second biggest city, Herat, according to forex dealer Hamidullah Temori.
‘Since the Taliban came to power (cryptocurrency) transfers to and from abroad have increased by 80 percent’, Temori told the Australian Federal Police (AFP). Transfers happen instantaneously and commissions are greatly decreased compared to transactions made by conventional remittances like Western Union or hawala systems.
Hawala forms of transfers can only exist outside the banking system. Noor Ahmed Haidar, a man who started exporting Saffron to different parts of Western countries like the U.S. and U.K, now has 90% of his orders paid using BTC.
‘I avoid going through the chaotic process of bank transfers’, Haidar stated. ‘Since August, it has really become the only option available, and the most convenient for me’, he added
Crypto safety net in Afghanistan
Crypto can be a lifeline for most day-to-day transactions. For instance, Ruholamin Haqshanas, writer for an Indian-based media firm, had his salary paid entirely in stablecoins and allowed him to absorb the fluctuation in the market due to the Afghani crisis.
‘Stablecoins offer a very good protection against the loss of value of the currency’, says Ruholamin. He is also trying to speculate on more volatile crypto thanks to the advice of a Whatsapp group chat with 13,000 members in Herat.
In a way, crypto can be a safety net for upcoming bear periods in the economy which can serve users well during trying times.
With more platforms like Gamdom crypto casino encouraging the use of cryptocurrencies in the world, the market will further help the global economy in times of crisis just like it has for Afghanistan.