Afghans using crypto to ‘safeguard’ their savings

Afghans are reportedly acquiring digital assets that they use to preserve their savings and to lessen the chance of having their money seized by the new authorities, Bloomberg reported this week.

According to Bloomberg, the demand for digital currencies in Afghanistan has surged as some Afghans look to buy stablecoins like tether because they are pegged to the U.S dollar.

The report quotes one 26-year-old Afghan resident, Habibullah Timori, as saying they the demand for cryptocurrencies is high.

“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,” he said.

The report also cites another 26-year-old Afghan, Naser Ali, who claims to have converted $30,000 stashed in his safe to USDT.

Ali said he regrets not having known about cryptocurrencies sooner, Bloomberg reported.

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.