Kokcha News Agency: Da Afghanistan Bank (DAB), Afghanistan’s central bank, has announced plans to reduce the country’s reliance on cash by promoting the use of electronic payment systems, such as bank cards and automated machines. This initiative is part of a broader agenda to modernize Afghanistan’s financial ecosystem.
DAB spokesperson Hasibullah Noori stated that systems are being designed to enable users to conduct transactions through various automated payment technologies. The goal is to improve transaction speed and reduce the degradation of physical currency.
“People will be able to use electronic cards for their financial transactions,” Noori said, adding that this shift will help reduce the wear and tear of paper money and enhance transaction efficiency.
Afghanistan remains one of the most cash-reliant economies in the world, with the majority of daily transactions conducted using physical currency. This dependency is driven by limited banking penetration, especially in rural areas where over 70% of Afghans live.
Since the Islamic Emirate’s return to power in August 2021, Afghanistan has faced increased challenges due to international isolation and sanctions. These include restricted access to the global banking system, frozen assets, and a reliance on informal transfer networks like hawala for both private and humanitarian finance.
While DAB is pushing for the adoption of electronic cards, experts argue that the necessary infrastructure is largely absent outside of Kabul and a few provincial capitals. Point-of-sale (POS) terminals, card readers, and payment networks are rare in most areas.
Moreover, many of the cards currently in circulation are linked to limited-use payroll accounts for civil servants or NGO employees and are not widely accepted in markets, transport systems, or shops.
Economic analysts emphasize that before widespread adoption of digital payments can occur, the central bank must invest in foundational infrastructure, including mobile banking systems, merchant acceptance networks, and public financial education.
