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This Asian Country is Banking on Bitcoin for a Better Future

Asian Country is Banking on Bitcoin

The post-war conflict in Afghanistan has exposed it to restrictions on non-concessional financing by the IMF. This meant that the developed countries were not likely to invest in this country’s economy, blocking the possibilities of its development.

Afghanistan to Invest in Bitcoin Bonds

The above-mentioned scenario led the Governor of the Central Bank of Afghanistan, Khalil Sediq, to look at Cryptocurrencies for accessing global markets. He said that they were looking at utilising cryptocurrency and blockchain technology to raise $5.8 billion. They will be pairing it with metal futures as lithium.

Since they have a $3 Trillion lithium sector, it would open them to investors from across the globe. There is a growing demand for the metal, and the supply is short.

This gives Afghanistan to leverage its reserves to gain anonymous investments from investors globally and raise capital for improving the economy of the country.

What it Means for Bitcoin

This step by Afghanistan, of investing in the $5.8 Billion in Bitcoin, would increase the value of Bitcoin and make it more accessible.

Crypto enabled bonds would bring the industry into the mainstream financial market and enable larger institutions to store value in Bitcoin making it possible to use it as a payment method.

Crypto Solutions like hyper-ledger Fabric could make that happen easily with their secure blockchain technologies.

Other Countries Rallying on the Crypto

Other countries like Tunisia and Uzbekistan are also trying to bank on cryptocurrencies to bring in investors from international markets and improve the deteriorating economies.

Most of the developing countries are considering the crypto solutions as a means to improve economies and have opened debate on it in IMF conferences.

IMF Remains Cautious

International Monetary Fund is not exactly affirmative with these countries’ decision and is warning them to be cautious toward using these technologies.

The director of IMF said that supervised testing should be a wise step to bring crypto assets to the country’s economy.

However, she wasn’t particularly against it as she agreed that it does have the potential to improve our lives.

Fight Against Money Laundering

Marouane El Abbasi, governor of the Central Bank of Tunisia, has stated that blockchain technology could help fight money laundering and cross-boundary terrorism.

Tunisia has sent a study team to look into cryptocurrencies and blockchain technology to help make it work for their current economic situation.

Uzbekistan’s Cotton and Bitcoin

Just as Afghanistan is planning to tie lithium reserves to Bitcoin, Uzbekistan can tie it to its cotton production and help bring investment from outside the country.

This would help them improve the economic conditions of the country and make it a more prominent and economically matured nation.

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