Afghan bank does not execute Taliban cash takeover of bitcoin

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Hundreds of residents of the Afghan capital Kabul rushed into banks on August 15 to withdraw money from their bank accounts as Taliban fighters took control of the city demanding the government surrender, reported Al Jazeera.

After the Taliban took power, which followed hours of negotiations for a peaceful transition of power with President Ashraf Ghani, Afghans and foreigners rushed to the airport to leave the city. Ghani then left the country and the Taliban said they would soon announce the Islamic Emirate of Afghanistan from the presidential palace.

Hundreds of people have since lined up outside ATMs and bank branches to withdraw their savings before fleeing the country, only to run into a brick wall. Abdul Mossawer, a 32-year-old police officer, was told by bank workers that he had no money to withdraw. Even if he insisted, bankers repeatedly explained various reasons why people were slow to get their money back.

Afghans stand in line for hours to withdraw money outside a bank in Kabul. [Rahmat Gul/AP Photo]

“Is your money in the bank? Then it’s not yours. Afghanistan is just the latest crisis to illustrate the critical value of keeping your family’s savings,” tweeted Alex Gladstein, director. of the Human Rights Foundation’s strategy.

The fractional reserve financial system that prevails today, as well as the reign of fiat currencies, has inherent drawbacks. Since your current bank account balance is not entirely there, a bank rush would cause chaos, similar to the situation in Afghanistan. Bank accounts can be quickly frozen and a person with large amounts of cash can become an obvious target for criminals.

Unfortunately for most Afghans, who could not withdraw their money and flee the country, there is little they can do as their hands are tied to the arbitrary decisions of third parties in times of crisis. But with Bitcoin and auto-custody, as Gladstein points out, the story could have been different. If people had kept their savings in BTC instead of fiat currency, not only could they easily transport them anywhere without asking permission, but they would also benefit from increasing purchasing power over the years.

Among oppressive regimes, nefarious economic policies, war zones, and monetary colonialism, Bitcoin is uniquely positioned to restore freedom and sovereignty to the world. Distributed electronic money that does not ask permission from anyone can bring lasting change to all corners of the globe, but its benefits require greater awareness.

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