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Aisha Hamid sold her gold jewelry in 2023 and invested $6,000 in Bitcoin, desperate to protect her family’s savings as Yemen’s inflation ate away at the value of her husband’s income.
She is part of a growing wave of Yemenis turning to cryptocurrency as the country’s economic collapse intensifies, with inflation running at 20.7%, US sanctions blocking traditional banking channels, and $3.8 billion in annual remittances increasingly difficult to access through conventional means.
The rapid expansion of Yemen crypto adoption is closely tied to the country’s prolonged economic crisis. Inflation peaked at 45% in 2021 and, although it has eased to around 20.7%, the damage to household savings has already been done.
Aisha Hamid, a 34-year-old resident of Sana’a, said inflation steadily eroded the value of money she had saved from her husband’s income. Initially, she turned to gold to preserve value but later shifted entirely to cryptocurrency.
“I sold my gold jewellery to invest in Bitcoin after watching my savings erode from inflation over the years,” — Aisha Hamid, Sana’a resident, told The New Arab.
Hamid said she invested around $6,000 in digital assets in 2023, motivated by the surge in crypto awareness following the 2021 global market boom. After early gains, she encouraged friends and relatives to explore cryptocurrencies as well, reflecting a broader pattern of peer-driven Yemen crypto adoption.
Young professionals are also part of this trend. Mohammed Khaled, a 27-year-old medical school graduate, said social media discussions and informal advice pushed him toward digital currencies.
“I found many Yemenis talking about it on social media,” — Mohammed Khaled, medical graduate, told The New Arab. “An economic researcher told me it would rise dramatically in 2025 and would be stronger than gold as an investment.”
Khaled later exited his crypto positions during a market slowdown in 2025 and reinvested in gold, underscoring the volatility that accompanies Yemen crypto adoption.
Beyond inflation, international sanctions and banking restrictions have played a significant role in accelerating Yemen crypto adoption. In January, the United States imposed sanctions on 21 financial and military entities in Houthi-controlled areas, further complicating financial transfers.
Mustafa Nasr, head of the Studies and Economic Media Centre, said sanctions have unintentionally encouraged wider use of encrypted digital currencies.
“American sanctions on the Houthis have made encrypted digital currencies more widespread in Yemen over the past two years,” — Mustafa Nasr, Head, Studies and Economic Media Centre.
Nasr explained that cryptocurrencies allow some users to bypass restrictions on traditional banking transfers, particularly for remittances. Yemen received $3.8 billion in remittances in 2024, according to the World Bank, making it one of the most remittance-dependent economies globally.
“Some groups use digital currencies to bypass restrictions and sanctions, especially regarding financial transfers,” Nasr added. “These digital assets make a suitable alternative to banking transfer systems, which also face repeated restrictions.”
This dynamic has made Yemen crypto adoption especially appealing to families reliant on income from relatives working in the Gulf and other regions.
For merchants, Yemen crypto adoption offers practical advantages in a cash-strapped economy. Hisham Badri, a trader and member of the Sana’a Chamber of Commerce, said cryptocurrencies reduce transaction costs and protect against currency fluctuations.
“Many merchants use e-commerce platforms that accept cryptocurrency,” — Hisham Badri, Sana’a Chamber of Commerce. “That opens new doors to expanding their businesses beyond Yemen.”
However, the absence of regulatory oversight has left users exposed. Experts warn that Yemen’s crypto market is vulnerable to fraud, impersonation schemes, and sudden platform failures. Several Yemenis told The New Arab they lost funds through unregulated or deceptive platforms.
Duaa Ahmed, who once represented a crypto company, described how investors were misled by a firm falsely presenting itself as “Doge Coin.”
“I was accused of fraud because this company was impersonating the globally known Dogecoin,” — Duaa Ahmed, former crypto company representative.
Other investors recounted wallets being frozen, emails suspended, and demands for additional payments to regain access—common experiences in an unregulated environment where Yemen crypto adoption continues without legal safeguards.
Banking and technical experts say the lack of a legal framework is the greatest threat facing Yemen crypto adoption. A local banking source in Aden said restrictions on digital banking access have disrupted transfers and worsened uncertainty.
Fahmi al-Bahith, a technical expert, warned that disruptions to banking and internet services push citizens toward dangerous alternatives.
“Those who tamper with banking and internet services are not pressuring a political opponent,” — Fahmi al-Bahith, technical expert. “They are pressuring citizens’ lives, increasing poverty and anxiety, and pushing people toward dangerous alternatives like unreliable intermediaries, the black market, fraud, and financial and digital extortion.”
The Yemeni Banks Association has also warned of “serious restrictions” on access to banking applications, cautioning against the use of telecommunications disruptions as tools that harm the wider economy.
Nasr stressed that without legislation, Yemen crypto adoption will remain risky.
“The most prominent challenge is the absence of regulatory legislation,” — Mustafa Nasr, Studies and Economic Media Centre. “Yemen has no clear laws to protect investors… and encrypted currencies experience major changes in value within a few hours.”
As Yemen’s crisis deepens, Yemen crypto adoption is likely to keep growing—driven by necessity rather than confidence—leaving millions to navigate a financial frontier with little protection and high stakes.
