CRYPTOCURRENCY AS A SOLUTION FOR CROSS-BORDER FUND TRANSFER ISSUES IN AFGHANISTAN: A STUDY OF PUBLIC AWARENESS, ATTITUDES AND ADOPTION

Abstract

Cryptocurrency is a digital exchange system that uses cryptography to create and distribute tokens in a peer-to-peer network. Cryptocurrency is a form of digital currency based on blockchain technology, making it fully decentralized. This decentralization feature enables easy money transfers, leading many researchers to study the success factors of cryptocurrency-based fund transfer services in different countries and regions. On the other hand, Afghanistan has faced constant problems with cross-border money transfers, which have been exacerbated by the Taliban takeover and subsequent international sanctions. Therefore, an alternative solution to the country's international remittance problems must be found. This study examines the willingness of the Afghan public to adopt cryptocurrency-based remittance services. It focuses on important factors that may have a significant impact on the success of this new transfer method. The study uses a quantitative research methodology and an online questionnaire survey to collect data from 200 Afghans in Afghanistan and abroad. The findings reveal significant problems with current remittance methods, particularly with banks and hawala. The study found great concerns among Afghans regarding hawala and banking transfer rates as well as their availability in different regions. In addition, awareness of cryptocurrencies among the Afghan public is basic as there are only a few people who have traded or owned cryptocurrency coins. However, the attitudes toward cryptocurrencies are considered good and positive as the majority of the participants are happy with the cryptocurrency security, privacy, and transfer fee mechanisms. The results of the regression analysis show that the difficulties associated with current remittance methods and the attitude towards cryptocurrencies significantly influence the adoption of cryptocurrency-based money transfer services in Afghanistan. However, the impact of cryptocurrency awareness on adoption is relatively low. This will benefit government policymakers to look into the matter and as well as attract investors to invest in cryptocurrency-based transfer services and exchanges. Overall, this study sheds light on the potential of cryptocurrency-based money transfer services in Afghanistan and provides insights into the factors that influence their adoption.