In August of last year when the Islamist organization Taliban took power in Afghanistan, the online commerce "Asir", which had been selling handmade crafts until then, was immediately released to the Afghan people. We have shifted our focus to activities that accept donations to buy emergency relief supplies in crypto assets (virtual currency).
These charities, which use cryptocurrencies to support people who do not have access to traditional banking systems, are widespread worldwide. The recent plunge in the cryptocurrency market has not put a stop to this trend.
"We can't make cash decisions," said Mohammad Nasir, chief technology officer at Asir, due to international sanctions on the Taliban.
Asir accepts donations in legal tender as well as virtual currency and converts them into virtual currency to buy food and first aid kits. Even after the earthquake that struck eastern Afghanistan on the 22nd, they set out to collect donations for the victims. About 1,000 people were killed in the quake.
According to Nashir, Asir uses stablecoin, which is linked to major fiat currencies, in order to reduce the effects of market fluctuations. However, the price of stablecoin has also fallen sharply.
Cryptocurrencies have plummeted across the board, with typical Bitcoin dropping by about 60% since the beginning of the year. Still, they remain attractive in places where the traditional financial system cannot be used due to sanctions and other turmoil.
Bitcoin and other cryptocurrencies were designed as free currencies that are not controlled by central financial authorities such as governments and central banks. Users can send money online without any intervention.
The high degree of anonymity provides a hideout for criminals, militant groups, and sanctioned governments, while others defend it as supporting the civilian population in crisis.
When Russia invaded Ukraine, activist Lyudmyla Kozlovska turned to Bitcoin to buy relief supplies for those stuck in the war zone.
Kozlovska is a Ukrainian living in Brussels and the founder of the Open Dialogue Foundation, a human rights organization. "She didn't have a banking system at the beginning of the invasion," she said, "without Bitcoin, she wouldn't have been able to buy the first 100 bulletproof vests she had delivered to civilians protecting her home." Looked back.
Bitcoin's market plunged, but Kozlovska said he didn't suffer much damage as he quickly converted to local currency.
The Ukrainian government has raised about $ 100 million worth of cryptocurrencies since the invasion in February, but the value has been blown away by the plunge.
Cryptocurrencies are also very active in Gaza Strip, and Palestine. According to GAZA software developer Ibrahim Elhout, Palestinians are locked out of typical international payment apps and can send or receive remittances to and from foreign countries without paying high fees to local banks and intermediaries. Can not.
"It's very difficult to get payments in Gaza. Most parts of the world restrict it," Without said. He also receives payments in cryptocurrencies from foreign customers.
Most people in Afghanistan do not have a bank account and their currency has plummeted in the past year. Cryptocurrency is a more effective way to send money, said Sanzar Kakar, the founder of the mobile app Hasabpay.
The app allows cryptocurrency transfers, and Kakar is also experimenting with a stablecoin version. "More and more Afghan people are using stablecoin to send money and receive money," he said.
However, in El Salvador, Central America, which made Bitcoin the legal tender last year, the adoption of Bitcoin has not progressed due to a system malfunction, and the value of Bitcoin held by the country has almost halved due to the market price plunge.
Afghan video blogger Farhan Hotak also suffered a loss in the crash. Still, trust in cryptocurrencies has not been lost, and interest among other people remains high.
Kotaku often uploads videos about cryptocurrencies. "Of course, we always encourage our followers to be aware of the risk, but when it comes to risk, we Afghans know better than anyone else."
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