In fragile and conflict-affected settings, instability can shape how people manage their money. This study, co-authored by Georgia Tech economist Robert Gonzalez, examines
how violence influences the adoption and use of mobile money in Afghanistan—a technology often viewed as a pathway to financial inclusion.
Drawing on three complementary sources of data—nationwide transaction records, a randomized field experiment, and a large household survey—the research consistently shows that exposure to violence reduces trust in mobile money. Afghans living in or expecting violent events are less likely to keep funds in mobile money accounts and more likely to hold cash instead. Even when offered salary payments through mobile money, employees who anticipated violence withdrew much of their balance and stored savings in cash.
The findings highlight an important challenge: while mobile money has the potential to expand financial access in developing economies, its adoption is limited when insecurity undermines people’s confidence in the stability of financial systems. In contexts like Afghanistan, cash remains the most reliable option during crises. This research underscores the broader connection between violence, trust, and economic development.