Afghanistan stablecoin, an unexpected innovation in cryptocurrency

Author: Aryn Baker, The New York Times

Translation: Felix, PANews

In a bustling currency exchange in northwest Syria, a 46-year-old farmer clutches a plastic card tightly, as if it were her lifeline. She has never heard of cryptocurrency, but this card contains $500 worth of crypto, which could help her restart her farm after nearly 14 years of civil war.

When the teller confirmed the total and withdrew cash from Hala Mahmoud Almahmoud’s account, the farmer smiled with relief and stopped to thank them. She asked where such technology came from.

The answer surprised her: Afghanistan.

Perhaps many would not imagine that this blockchain-based cash transfer innovation comes from a country under Taliban rule, with a skeptical attitude toward the internet. However, in this nearly isolated country, an Afghan startup is developing tools in hopes of changing the way humanitarian aid is delivered in conflict-ravaged nations.

Zakia Hussain, a 26-year-old programmer at the startup HesabPay, said, “We have experienced these challenges ourselves, so we know how to develop effective solutions.” It is HesabPay that designed the technology behind Almahmoud’s card.

Hala Mahmoud Almahmoud outside her home near Latamina, Syria. She received $500 in crypto aid, which helped her reopen her farm.

The UNHCR is one of the early supporters of this platform. The organization uses it to support over 86,000 Afghan families, making it one of the largest public blockchain aid programs worldwide. The charitable organization Mercy Corps, which donated to Almahmoud, partnered with HesabPay to expand aid to Syria, and is currently developing projects for Sudan and Haiti.

In Syria, obtaining funds from abroad is very complicated. Cash shortages, international banks avoiding the country, and remittance companies like Western Union charging up to 10% in transfer fees. HesabPay enables organizations like Mercy Corps to bypass these barriers.

Afghan-American entrepreneur Sanzar Kakar is the founder of HesabPay. He previously operated Afghanistan’s largest payroll processing company. But the U.S. withdrawal from Afghanistan in 2021 and the Taliban’s return to power triggered a financial collapse. Sanctions disrupted international remittances, and the central bank became paralyzed.

To address the country’s worsening financial insecurity, Kakar turned to blockchain technology. He created HesabPay (meaning “account” in the local language), a mobile app that allows instant transfers from one digital wallet to another, bypassing banks and the Taliban government. He said the Afghan government has granted his company a formal operating license.

The aid organization Mercy Corps partnered with HesabPay to expand the platform’s services to Syria.

Today, the platform has over 650,000 wallets in Afghanistan, with about 50,000 actively used, transferring approximately $60 million worth of Afghan Afghani stablecoins monthly (a stablecoin pegged to the Afghan currency).

Since February 2025, the UN has used HesabPay to distribute nearly $25 million to returning Afghan refugees through 80,000 digital wallets. Carmen Hett, the UNHCR’s enterprise finance officer, said, “This helps reduce transaction costs, shorten wait times, and improve traceability, real-time monitoring, and accountability of transactions.”

Ric Shreves, a decentralized finance solutions expert and chairman of the Decentralized Cooperation Foundation, said it’s not surprising that organizations like Mercy Corps and the UN are turning to blockchain-based fund transfers for aid. He added, “For these organizations, this method offers almost all advantages over traditional aid.”

However, he also pointed out that risks remain, especially when payment systems are based on local currency stablecoins, as in Afghanistan. (In Syria, the crypto in HesabPay wallets is backed by USD, which is a more stable option.) Just as wallets could be shut down for interacting with sanctioned individuals, they could theoretically also be closed by a country’s central bank for political reasons.

Using blockchain technology makes it easier for Mercy Corps to send remittances to Syria, where cash is scarce and international banks often do not operate.

Shreves said, “When we provide non-physical transaction methods, it also means these transactions could be blocked through technical means.” He added that digital currencies are clearly safer than cash, but they still can’t be hidden under a mattress like cash.

In recent years, aid organizations have increasingly favored cash aid, viewing it as a quick and dignified form of assistance. But cash aid has a flaw: it’s difficult to track the flow of funds. Donors want to see their donations reach those in need. Since President Trump drastically cut U.S. foreign aid last year, organizations like Mercy Corps have faced greater pressure to prove the effectiveness and integrity of their aid.

This is where blockchain plays a role, creating a digital record that accurately tracks how much money was sent, to whom, and where it went. Scott Onder, Chief Investment Officer of Mercy Corps, said this combination of speed and accountability “may help regain the trust of those skeptical about aid effectiveness.”

HesabPay also features additional security measures, such as real-time dashboards to track wallet activity and cross-check it against international compliance databases. The company said the system is designed to detect illegal activities like terrorism financing, money laundering, and cyber fraud, and to immediately alert when suspicious transactions occur. For aid donors, this provides a supervision mechanism that is almost impossible to implement in fragile countries.

Resident of Halfaya Abdul Moti Hammoud lost a leg after accidentally triggering a landmine while driving a tractor. He is a beneficiary of Mercy Corps.

In a recent online demonstration, the company’s senior humanitarian advisor Nigel Pont clicked on a purple dot representing an Afghan HesabPay agent. Dozens of light blue beneficiary wallets then appeared, showing recent transfer records. Clicking again, one could see where the funds went. Suddenly, one wallet lit up red, issuing a suspected scam alert — a slightly awkward moment during the live demo, but it exemplifies the system’s intended risk detection.

“From the perspective of aid donors, this is extremely valuable,” said Nigel Pont, former Chief Strategy Officer of Mercy Corps. “A system that can automatically flag fraud risks means you can verify immediately rather than waiting six months for a report of someone stealing $20,000.” He admitted that no system can completely eliminate corruption, but, he added, cash is the same.

22-year-old Abdul Halim Hasan was waiting in line with Almahmoud’s lady at the same currency exchange in Syria. He said he imagines a day when HesabPay can be used like a regular bank account to receive funds, pay bills, and save money securely. But for now, his HesabPay card is enough to access the funds he needs to restart his post-war life.

Almahmoud (second from left) and her family pose with Mercy Corps staff in Halfaya.

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