Crypto Frontline

Afghanistan Sees Rapid Cryptocurrency Adoption This Year

Afghanistan Sees Rapid Cryptocurrency Adoption This Year
August 26
16:25 2021

Afghanistan’s citizens are reportedly increasingly adopting cryptocurrencies this year. This observation of the latest trend involving the rapid adoption of virtual coins comes as a coup d’état happened in the landlocked country at the crossroads of South and Central Asia in the middle of this month.


We find this cryptocurrency-related report worth reading and sharing with our readers. We think it gives insights into how crypto-assets have penetrated Afghanistan and how they shape its financial system.


Based on the news posted online by Indian news outlet India Today, investing in virtual currencies is a fairly new concept in Afghanistan. Nevertheless, the nation has witnessed the rapid embracing of virtual coins this year.


Additionally, Afghanistan has exhibited a massive improvement from last year. It ranked 20th out of the 154 nations in the 2021 Chainalysis Global Crypto Adoption Index.


This development in the Asian country recorded by cryptocurrency analysts is seen as a significant milestone because, in 2020, it did not even make the Chainalysis list. According to the recent report, Afghanistan also leaped up to 7th place upon isolating its peer-to-peer exchange trade volume.


The data suggests that more Afghan citizens began pouring their investment funds into crypto-assets this year. One explanation for this trend is that these investors likely feared an economic crisis as the Taliban started its quest to control Afghanistan.


Furthermore, merely weeks before the eruption of the Taliban coup in Kabul, Google Trends data disclosed that Internet searches in Afghanistan for keywords ‘crypto’ and ‘Bitcoin’ surged last month. But there is no way to determine the precise search numbers as the tool does not record actual figures and only computes the interest measure.


At this time, virtual currency adoption in Afghanistan may have grown. Nonetheless, cryptocurrency analysts said this development is far from levels seen in other territories where crypto-assets have gained immense popularity. Some basic issues have hindered large-scale virtual currency adoption in the nation.


They are a lack of cryptocurrency awareness and low banking. Additionally, electricity problems and undeveloped Internet services count as some of the basic problems hampering the large-scale cryptocurrency acceptance in Afghanistan.


We think Afghans have leveled up their financial literacy considerably that a growing number of investors have invested in virtual assets lately and depend on their cryptocurrency holdings. We gathered that this event happens amid the ongoing economic crisis in Afghanistan triggered by the Taliban government’s hostile coup d’état.


We recommend Afghan citizens carry on pursuing their interest in cryptocurrency investing. They may not be able to buy anything right away with these virtual assets. However, we want to assure them that they can be confident that their crypto-assets will be safe despite the ongoing economic instability in Afghanistan.


Plus, we want to assure Afghan investors that the present strife in their country is temporary. Hence, we recommend they plan for better days ahead to maximize the benefits they enjoy from their cryptocurrency investments.


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