Afghanistan turns to Bitcoin for post war developments

Khalil Sediq, the Governor of Central bank of Afghanistan, expressed that the initiative of issuance of digital ratified government bond to the investors over blockchain could be helpful.

Afghanistan – a worn torn country also known as ‘Graveyard of Great Empires’ is struggling to stabilize its economy.

The political turmoil started when in 1970 the president Daud Khan got assassinated, and the Soviet Union invaded in Afghanistan, but later the U.S. also invaded, and the power struggle between the two superpowers started on the soil of Afghanistan.

In the late 80s, the Soviet left and so the Taliban came into power. However the U.S. again invaded in Afghanistan after the incident of 9/11 to crush the extremist Taliban regime, and so the longest known war has been witnessed.

All these events have proved that the continuous power struggle and the political turmoil have devastated the economy of Afghanistan.

Effects of war on Afghanistan:

Almost twenty-five percent (25%) population of Afghanistan is unemployed and poor. Capital, labor, trade infrastructure, and transport are all crippled.

IMF expressed that Afghanistan external debt was at high risk and the World Bank has given warning to not allow the loan grants below the typical interest rate.

Way- Forward to stabilize the dwindling economy:

The governor Kahlid Sediq believes that Bitcoin can pave the way for Afghanistan to enter into the international market.

Afghanistan is rich with mineral resources especially Lithium, and there is a massive demand for Lithium in the global market so, Afghanistan could provide an opportunity to the global investors with the Bitcoin to explore the untapped mineral reserves.

The Managing Director of the IMF appreciated this move and also said that the bond issuance should first go through the sandbox testing environment.

Advertisements