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massive cash withdrawals cause banking chaos

Key facts:
  • Government authorities, including the president of the Central Bank, fled Afghanistan.

  • Opinions of many bitcoiners were deemed “shameful” by an American journalist.

The taking of Kabul, the capital of Afghanistan, by the Taliban, and the consequent fall of the government of President Ashraf Ahmadzai, last Sunday, caused a situation of chaos in that Asian nation.

After the event, hundreds of residents of the Afghan capital immediately went to the banks to withdraw the money from their accounts, according to the information agency Aljazeera. The goal of many was take the cash and then leave the country.

The massive attendance at bank branches caused delays, congestion and long lines. According to social media users, some would not have been able to withdraw their money as a consequence of this situation.

“I am here to withdraw my salary, the Government is not solving our problems. I’ve been here since 6:00 AM and nobody pays attention to us “, says a policeman who was interviewed by Bloomberg.

Also they currency exchange markets panicked, especially after the price of the Afghan currency fell drastically last Friday.

«I held meetings on Saturday to reassure the banks and exchange houses, to calm them down. I can’t believe that was the day before the fall of Kabul, ”he wrote on his Facebook account. Twitter Ajmal Ahmady. This individual served as president of the Central Bank of Afghanistan until Sunday, the day he left the country, as did President Ahmadzai and other officials of his government.

The Afghan banking system suffered delays and collapse when thousands of Kabul residents wanted to withdraw their deposits. Source: @InvestRepeat / twitter.com

The event highlighted the problems caused by the lack of portability fiat money, that is to say, of the one that is emitted by the States and imposed by mandate.

“Don’t wait for that to happen in your country”

Unlike national currencies, various apologists for bitcoin (BTC) propose that cryptocurrency as a money that solves, among others, the problem of lack of portability.

For example, for the Colombian bitcoiner Juan Rodríguez, host of the YouTube channel “Bitcoin y Criptos”, it is important that “we do not see bitcoin only for its investment and savings benefits, but also for the properties it has as money.”

Regarding the case of Afghanistan, Rodríguez explains on his channel that many of the people who are trying to leave that country now, “will have to start from scratch in the country where they arrive.” “With bitcoin they would simply have to engrave 12 words in their heads and with that they already begin to move their money, from there or wherever, to the place where they are going to arrive,” he adds.

«Some will say ‘that is not going to happen in my country, the situation that is happening in Afghanistan is definitely something isolated’. I would say to them, “Okay, in that same context it’s not going to happen, but in a very similar way, yes.”

Juan Rodríguez, host of the YouTube channel “Bitcoin and cryptos”

The youtuber Colombian gives as an example the case of Argentina, which, at the end of 2001, suffered what is known as a «corralito». For several months, account holders were prevented from withdrawing all of their bank deposits in cash.

Rodríguez also mentions the case of Venezuela: “Many Venezuelans decided to leave, because of their government, that country, and many of them, taking that step towards other countries, had their money stolen or lost. In addition, the same Government at some point told them “this money that you have here you cannot get everything”.

After mentioning these two examples, the communicator advises: «do not wait for that to happen in your country, get ready, understand bitcoin and use it [porque es preferible] That it is in your interest that you know about bitcoin, or that you have it in your storage, that it is the need or the situation of your country that forces you to handle bitcoin ».

“Some people only have one filter through which they see the world: bitcoin”

Unlike Juan Rodríguez, who only takes the situation in Afghanistan as an example of something that could happen in other parts of the world, several Twitter users implied that, according to them, the cryptocurrency would have completely solved the problem of the Asian country. Even, in the opinion of some, bitcoin could have prevented the Asian nation from going through a situation of this magnitude.

Also supporters of other blockchains, such as Ethereum, were encouraged to give your opinion on how his favorite blockchain would prevent the Taliban from succeeding. ‘Decisions could still be made through a DAO involving the outside world, so [los bancos] they wouldn’t stop working for a second, “he wrote @ptonerdoteth.

Memes could not be absent. The renowned bitcoiner Max Kaiser, compared to a group of Afghans trying to get on a moving plane – a situation in which at least three people died – with the «no-coiners»(People who reject bitcoin) who supposedly will want to have BTC when it is worth more than USD 100,000.

About all this was expressed, in a critical way, Jeff Benson, editor-in-chief of Decrypt newspaper: “As if the people of Afghanistan hadn’t been through enough, some Bitcoin maximalists shared their views on Twitter.”

When interpreting the world, some people apply religious beliefs. Others see it across the confines of a political party or family upbringing. And some people only have one filter through which they see the world: Bitcoin.

Jeff Benson, editor-in-chief of Decrypt.

For Benson, comments like the ones mentioned here are “embarrassing.” The journalist criticized the evident ignorance of many opinion makers about the geopolitical, economic and social context of Afghanistan and the reductionism of seeing in Bitcoin the solution to all problems.

“In fact,” says Benson, “most Afghans haven’t even heard of Bitcoin because more than half of Afghan adults are illiterate, a consequence of the continued lack of access to a safe education thanks to groups like the Taliban ‘.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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