By Jamison Watt
Since moving here in 2009, I have observed Kurdistan skipping over several phases of development in its rapid modernization. For example, decades ago, when small Nokia cell phones became ubiquitous, the region bypassed a phase of widespread landline use. Similarly, while some have personal computers, most Kurds have skipped directly to handheld smartphones. As in the case of these technological leaps, let us consider how Kurdistan might benefit from bypassing an undeveloped traditional banking system and moving directly into the future of digital and cryptocurrencies.
“I don’t trust our banks,” says one Kurdish interviewee who chose to remain anonymous. “Immediately after getting my salary, I withdraw my salary and keep the cash hidden in my house.” This sentiment is common in Kurdistan, where the banking system has struggled to gain the trust of the public. Could this be an opportunity for the Kurdistan Region to skip forward into the future of finance by adopting cryptocurrencies? Let’s explore the potential benefits and challenges.
Cryptocurrencies could provide significant opportunities, especially for developing countries like Kurdistan, where a large portion of the population lacks access to traditional banking services. Around 40% of the world’s adults remain unbanked, and traditional banks (or money transfer services like Western Union or MoneyGram) may charge high costs and put up bureaucratic barriers to the sharing of money. Cryptocurrencies offer fast, affordable alternatives for transferring funds, which could be especially beneficial for many Kurds who often send or receive money internationally. At present, many Kurds rely on unreliable, costly, or unsustainable methods of transferring funds. One of the most practical advantages of cryptocurrency adoption would be simple, cheap, cross-border, person-to-person money transfers.
Further, cryptocurrencies—particularly Bitcoin—offer Kurds the opportunity to store and protect their wealth safely amidst growing inflation, which is an obvious concern in neighboring countries like Lebanon, Syria, and Turkey. Currently, many Kurds (and much of the world) safeguard their wealth in U.S. Dollars due to a lack of faith in their country’s fiat currency, such as the Iraqi dinar. However, since 2020, the U.S. has been increasing its money supply by trillions each year, diminishing the value of each dollar hidden away in Kurdish homes. In contrast, Bitcoin has a fixed supply of 21 million coins. Although its price may fluctuate, the total supply of Bitcoin will never increase, unlike government-backed currencies that can be printed at will.
In addition to protecting wealth, cryptocurrencies offer immense potential for investment and economic growth. The use of a decentralized global payment system could attract foreign investment and simplify business transactions for Kurdish businesses. Blockchain technology also enables new business models, such as smart contracts. Cryptocurrencies provide access to global markets for freelancers and entrepreneurs while also offering a once-in-a-generation investment opportunity for nearly anyone with a smartphone.
Global adoption of cryptocurrencies is accelerating, and the Kurdistan Region ought not to be left behind. Just this week, U.S. President Donald Trump announced the first-ever White House Crypto Summit in March 2025. Although details were not available at the time of writing, Trump hinted that the U.S. government could begin holding cryptocurrencies like Bitcoin, Ethereum, Ripple (XRP), Solana, and Cardano in a strategic reserve. The rise of cryptocurrencies is also evident in lower-income countries, where individuals often place greater trust in a currency governed by code rather than one managed by a government. Countries like Thailand, Nigeria, and the Philippines have seen some of the highest rates of individual cryptocurrency ownership.
Of course, Kurdistan would face challenges if it were to adopt cryptocurrencies. A regulatory framework would need to be developed to prevent issues like money laundering or criminal activity (though it’s important to note that such issues occur even with fiat currencies!). Additionally, cryptocurrencies are still highly volatile, which makes them less practical for everyday transactions. As of writing, Bitcoin’s price has fluctuated by more than 8% in just 24 hours. The general perception of cryptocurrencies as mysterious or associated with illicit activity also creates apprehension around their adoption. Since cryptocurrency is a relatively new concept, many members of the Kurdish public may not feel comfortable investing in a currency they cannot physically see, touch, or store in their homes.
As the world becomes increasingly digital, cryptocurrencies will inevitably reach the Kurdistan Region in the coming years and decades; it would be wise to begin the conversation now about how to get ahead of the curve. Before fully embracing crypto, Kurdistan must focus on educating the public about its use and the creation of a minimal regulatory framework. While maintaining prudence and wisdom, Kurdistan ought not to miss the opportunity to benefit from what cryptocurrencies might offer the Kurdish people.