Friday
September 10
2021

Growing Use of Cryptocurrency in Afghanistan Poses Security Concerns

By Ian Talley

The Taliban takeover of Afghanistan has fueled a surge in the use of cryptocurrency as Afghans grasp for ways to cope with a deepening financial crisis, market analysts and local traders say, a trend that may offer hope for an ailing economy, but that poses concerns for Western security officials.

The appeal of cryptocurrency grew as Afghans saw it as a safe place for their funds and as digital-currency transactions continued in the wake of the Taliban’s seizure, while Western governments, banks and money-service businesses cut off access to other forms of finance, local traders say. The cryptocurrency option has provided a small but critical financial lifeline amid a cash crunch in an economy racked by political crisis.

Photo courtesy of Todd Huffman.

Source: The Wall Street Journal (link opens in a new window)

Categories
Technology
Tags
cryptocurrency, digital banking, digital identity, financial services, social impact, technology