Opinion Role of Crypto in Upcoming Refugee and Migrant Crisis

Role of Crypto in Upcoming Refugee and Migrant Crisis

August 21, 2021

With the fall of Kabul in Afghanistan, the world is once again becoming a lot more mindful of the problem of the refugee movement and mass migratory events across the world. Tellingly, the situation that is taking place in the war-torn nation in central Asia is very relevant to the European Union, which is why it is immediately getting more traction in the mass media. However, even when this particular situation is placed along with many other similar problems across the world, there is no denying that forced movement of people is a growing threat to world stability. Today, as many expect to see tens of thousands of Afghan civilians begin their long trek towards the shores of Europe, the new paradigms are also in play. 

Among those is the new prevalence of digital currency, including the biggest one of them all, bitcoin. Unlike in the previous huge migrant and refugee crisis in the EU, the future ones will include the factor of global digital currencies being present among the people on the move. This has several implications for digital currencies and the entire crypto domain. While none of them will be game-changers in either a positive or negative way, they are still telling signs about the future of humanity in general, as well as the direction that the next decades will likely take in terms of global finance and the flow of money.  

Fall of Kabul

The discussions about the immigrant crisis recently began once again, mainly because of the disaster in Afghanistan. With the foreign troops out of the country, the war for control with the Taliban movement began in earnest. The Afghan government deployed troops across the nation, trying to keep hold of the regional capital cities. However, faced with a trained and determined enemy, the poorly led and inexperienced troops of the Afghanistan army began deserting across the territories. This led to the ability of the Taliban to quickly secure a range of early victories, followed by their entrance into key cities. While many analysts believed that their offensive will focus on the more supportive south of the country, the activities soon spread out across other regions as well. 

That is why even northern cities, famous for their resistance to the Taliban in the 1990s, began falling one after another with only hours of fighting. Some of them did not even offer any resistance whatsoever. All the while, the Taliban units kept getting stronger and bolder. Soon enough they were on the outskirts of Kabul. The city fell without any combat and the two-decade resistance to the US presence in Afghanistan took over the country in less than two weeks. As that took place, a desperate plight for thousands of civilians began. All of them wanted to leave the country and the only means to do it was through a flight from Kabul airport. On the first day of the old government collapse, thousands flocked to the tarmac of the airport and tried to board any plane they could. The chaos and loss of life that ensued showed the world that the new phase of mass global migration just began. 

Finance of Plight

While the first thing that the mainstream audience notices about a situation like this is the overall human suffering, any mass plight of people has a clear financial dimension behind it. In the case of Afghans looking to flee Kabul, the situation is dire but straightforward. They must board a flight along with foreign nationals and escape the city and the country. If not, they will be stuck in Afghanistan for the time being. At some point in September, the US and UK forces will leave the country and the last evacuation flight will leave with them. However, millions of people who do not wish to live either under the Taliban or in a perpetual civil war will still work on leaving Afghanistan. 

They will use land routes either to the west, north or south to reach the shores of Europe or move even further. To do that they will need money and now it appears that more and more of them will go for cryptocurrencies. While people like players might be the first to come to mind as users of cryptocurrencies and digital currencies, migrating people make just as much sense. Those who move using illegal manners and global refugee trails are even more likely to embrace crypto for the same purposes. 

Mighty USD

The currency of choice for any mass transit of people is and remains the mighty US dollar. That currency is the one that most people carry on them when they begin their hard journeys and it is one that most places and most traffickers will take in. That fact will not change in these or any soon-to-happen migration crisis. Simply put, it works for the job at hand just like it is supposed to do in any other illegal or semi-legal financial dealing. Everyone loves and takes the USD. However, with the benefits of cryptocurrencies, which are not only for individuals like esports players of crypto first adopters, the possibility is now that they will gradually join the USD, not replace it. The advantages of such a dual setup and numerous key elements could be essential for any successful migration of an individual or a group of people.

Banking on the Go

It might be odd and slightly inappropriate to say that migrants and refugees can have access to para-banking services with the use of the bitcoin BTC token or any other digital currency. However, this is precisely the functionality that digital currency offers. Unlike USD holdings, they are not physically present on a person making this dangerous journey. Instead, they are on a digital service accessible through the world. From here, a person can send, receive, and even cash in money without the use of the regular banking sector. In theory, some decentralized finance services could even be at their disposal, like refugee loans and similar possibilities. While some like that might seem far-fetched now, having refugees paying their passage in bitcoin is likely taking place already.