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The withdrawal of US troops has plunged Afghanistan into a deep financial crisis. This has resulted in a nationwide cash shortage, a sharp increase in the price of everyday goods, and closed borders.
In addition, as the national currency has quickly fallen to record lows, banks are running out of cash, leading to closures across the country. This situation makes withdrawing cash an impossible endeavor.
The resulting political turmoil has also led to a steep rise in crypto usage. Afghanistan ranked 20th in the 2021 Global Cryptocurrency Adoption Index, and some Afghans transferred their savings to digital assets because they believe they are safer than banks and local currency.
If the Taliban’s isolation from international finance continues, the regime will likely adopt cryptocurrencies. And why? Because of their popularity and anonymity.
The role of cryptocurrencies in Afghanistan
About 7 million Afghans living abroad. As a result, local people are highly dependent on remittances from their family members around the world. And it is not uncommon for ise to rely on profits from crypto transactions. The income helps locals meet their daily needs.
