Afghanistan and Tunisia Turning to Bitcoin Bonds to Save Struggling Economies

Blockchain and cryptocurrency payments were a hot topic at the annual World Bank and International Monetary Fund (IMF) Spring Meetings. The delegates from several developing countries announced that they consider blockchain-based instruments a potential solution to their debt and investment issues. According to a report by the media outlet Asia Times, the monetary authorities of Afghanistan and Tunisia are currently competing to become the first country to issue government bonds based on Bitcoin (BTC). They hope this will stabilize their distressed economies and allow the government to overcome severe restrictions on borrowing.

Bitcoin Bonds Could Boost Afghan Economy

Khalil Sediq, the Governor of the Central Bank of Afghanistan, stated that this initiative might help the country to reach global markets and raise welcomed investments to the tune of US$5.8 billion for its mining, energy, and agriculture sectors. He believes that the use of blockchain technology will encourage foreign private investors and safeguard them from the geopolitical risks usually associated with the Afghan economy. Sediq also mentioned that Bitcoin could be linked to precious metal futures. Afghanistan is extremely rich with Lithium, so this might create a more solid valuation and provide an opportunity to invest in mineral reserves. If approved, this should become yet another innovative Bitcoin application.

Tunisia Turning to Bitcoin Bonds

This was not an isolated move. At the same Meetings, Banque Centrale de Tunisie governor Marouane El Abassi also disclosed that his country created a special working group that is seriously exploring the issuance of a sovereign Bitcoin bond. Currently, Tunisia already has its own digital currency, the e-dinar. Uzbekistan also took an interest in the topic. The Uzbek official delegation arrived at the IMF World Bank event to study Bitcoin and learn how it can launch its own Bitcoin bonds. Most likely, they will be coupled with the cotton futures market.

Bullish on Bitcoin Bonds

All in all, the general tendency is apparent. More developing economies are tending to turn to the blockchain when they need to find an alternative payment solution or financing source. This will further push the cryptocurrency industry into the world of traditional finance. Do you believe that blockchain-based sovereign bonds might help cryptocurrencies go mainstream? Let us know your thoughts in the comments below!