The Taliban, infamous for their strict interpretation of Islamic law and oppressive governance, have officially banned cryptocurrencies in Afghanistan, labeling them as “haram.” However, it has been revealed that members of the Taliban have been secretly trading memecoins such as Shiba Inu and Dogecoin, showcasing their hypocrisy and willingness to engage in forbidden activities.
After the collapse of Afghanistan’s economy following the Taliban takeover in August 2021, the financial system has been in disarray, with banks barely functioning and liquidity scarce. Citizens turned to cryptocurrencies as an alternative, but by 2024, the Taliban imposed a ban on crypto trading, further complicating the economic situation in the country.
Despite enforcing a ban on cryptocurrencies for ordinary citizens, some Taliban members have been participating in crypto trading under the radar, revealing a stark contrast between their actions and their public statements. This contradiction has drawn global attention and highlighted the gap between the Taliban’s rhetoric and their behavior.
Afghanistan was ranked 20th on Chainalysis’s Crypto Adoption Index in 2021, largely due to the use of crypto as a means of survival amid the economic crisis. However, the Taliban’s crackdown on crypto has led to a decline in local crypto activity, with exchanges being shut down and traders facing arrest, further exacerbating the financial hardships faced by the Afghan population.
Initially, cryptocurrencies were tolerated in Afghanistan as they provided a way for citizens to bypass banking restrictions and receive remittances. However, the Taliban’s sudden decision to ban crypto trading has had severe repercussions, with the government citing reasons such as facilitating gambling and scams, which they claim harm the people of Afghanistan.
As the economic situation in Afghanistan worsens, there are speculations that the Taliban may seek to align themselves with international partners such as Russia, with reports indicating potential collaboration in combating terrorism. The possibility of Afghanistan joining the BRICS as a partner country has also been raised, with uncertainties regarding the reactions of other BRICS members like India and China. Despite the challenges, some economists believe that there is hope for the Afghan economy to recover with the right strategies in place.
