A Bloomberg report said that crypto transactions per week have increased in value since the militant group took control.
Digital Currencies in High Demand
According to reports, the demand for digital currency in Afghanistan has increased as people try to prevent the Taliban from seizing their funds. Digital currencies can also be used to limit the Taliban’s economic influence.
A Bloomberg report shows that some Afghans are interested in buying stablecoins such as tether, which are tied to the U.S. dollar. According to the report, Habibullah Timori (26-year-old Afghan citizen) supports claims that his countrymen use digital assets to save their savings. He stated:
The demand for cryptocurrency is high. In the past, people kept their jewellery and cash in the ground. They decided to keep their cash and jewellery buried in crypto this time.
Another 26-year old Afghan named Naser Ali claims to have converted $30,000 he had stashed in his safe to UST. Ali claims that reports of Taliban raiding Afghan homes and taking Afghan citizens’ possessions were a major factor in his decision to convert from fiat currency to crypto.
Ali also stated that he regrets not knowing about cryptocurrency sooner in his remarks.
Residents are subject to a 1.5% transaction fee
The Taliban government has apparently suspended secondary education for teenage girls since it took control of the country. They have also demanded that government employees grow beards, and instituted gender segregation at amusement parks. The U.S. government halted access up to $9 billion in foreign currency reserves shortly after the militant group overthrew the previous government.
Although the Taliban’s return has seen a positive change in Afghanistan’s fortunes, it could also have contributed to an increase in the volume and value of cryptocurrency exchange transactions. Maihan, a cryptocurrency trading platform, is cited in the report as an example. It handles around $400,000 worth of crypto transactions per week. This value is more than twice what Maihan handled before the Taliban takeover, according to the report.
Maihan, an exchange that sells cryptocurrencies, claims that the U.S. sanctions against Afghanistan have made it impossible for Afghan residents to purchase digital currencies despite the surge in demand. Residents who buy crypto transactions from local exchanges will be charged 1.5% commission.