A Bloomberg report has it that Afghan residents are acquiring digital assets to preserve their savings and to limit the Taliban’s ability to affect their financial well-being.
Bloomberg reports that since the militant group seized control, the value of crypto transactions per week has in some cases doubled.
Afghan residents are trying to preempt the possible seizure of their funds by the Taliban, thus pushing the demand for digital currencies in Afghanistan higher.
Some Afghans are looking to buy stablecoins like tether because they are pegged to the U.S dollar, per the report.
During other crises, people stored their cash and jewellery in the ground or under their pillows. This time, they’ve decided to keep it buried in crypto.
Just shortly after the militant group toppled the previous government, the U.S. government blocked access to $9 billion in foreign exchange reserves.
Despite the surging demand for cryptocurrencies, exchanges like Maihan say the U.S. sanctions on Afghanistan are making it difficult for residents to buy digital currencies.
Further, residents buying from local crypto exchanges are charged a commission of 1.5% for every crypto transaction.