Yes, Bitcoin is banned in Afghanistan and one of the main reason behind is that “Govt. has no control over the cryptocurrencies”. To understand why bitcoins are banned in Afghanistan you should be aware of What is bitcoin.
What is Bitcoin?
Bitcoin is an open-source ledger of transactions held on a decentralized network. It enables a user to perform transactions securely without any central authority as we discussed earlier. Tokens are not printed as dollars or euros but they are a digital signature which is produced by computers. The verification and security are provided by cryptographic functions.
Read Also – What is Ethereum Blockchain?
Who invented Bitcoin?
Bitcoin is developed by an individual or a group under the name of pseudonymous software developer known as Satoshi Nakamoto. In 2008, Bitcoin was released as a digital currency which is based on a mathematical proof.
Why Bitcoin is banned in Afghanistan?
Bitcoin is banned in Afghanistan because of the following reasons,
- It has no central authority due to which it is out of the control of the Government.
- It is used to perform illegal transactions such as for human trafficking, child pornography, purchasing drugs and other illegal activities.
- Also, It is used for money laundering purposes as bitcoin is a node-to-node network service to perform transactions.
- Also, Other factors are financial institutions such as Bank don’t need a competitor and using Bitcoin will reduce the dominance of banks.
Furthermore, Bitcoin is banned for this reason in many countries