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Yemen’s Crypto Exodus: DeFi Usage Soars 63% as U.S. Sanctions Cripple Houthi Banking
The situation in Yemen is a stark reminder that financial desperation can be a powerful catalyst for crypto adoption. In an unprecedented surge, decentralized finance (DeFi) usage has skyrocketed by a whopping 63% as the United States sanctions cripple the banking system of Iran-backed Houthi rebels.
In a shocking turn of events, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) added International Bank of Yemen (IBY), along with its top leaders, to its sanction list on April 17th. The move effectively blocks IBY from engaging in any transactions within the United States or with American entities.
The unprecedented measures come as a response to IBY’s alleged facilitation of Houthi attacks that have made the Red Sea trans-shipping line unsafe. Michael Faulkender, Deputy Secretary of the U.S. Treasury, emphasized the administration’s commitment to disrupting the Houthis’ ability to secure funds and procure key components for their destabilizing attacks.
The sanctions have had an unintended yet profound impact on the local population. The ongoing conflict has already disrupted financial services, including remittance payments from diaspora communities. In a desperate bid to stay financially afloat, Yemenis are turning to decentralized finance platforms in droves. According to TRM Labs, a blockchain security firm, over 63% of observed cryptocurrency activity is now concentrated on DeFi platforms.
This unprecedented shift has significant implications for the global crypto market. The rapid rise in demand is expected to continue as more Yemenis adopt DeFi solutions to bypass the traditional banking system. This exodus from traditional banking has far-reaching consequences for regional economies and the global financial landscape.
As the situation unfolds, it remains unclear whether this surge in DeFi adoption will translate into a long-term shift in the country’s financial habits or if it is merely a temporary response to an economic crisis.
Source: https://ambcrypto.com/yemens-crypto-exodus-defi-usage-soars-63-as-u-s-sanctions-cripple-houthi-banking/
