Pakistan is sitting on a massive amount of cryptocurrency worth between $20 billion and $30 billion, but the country has no laws or regulations to control it. This surprising information was shared by experts at the Sustainable Development Policy Institute’s annual conference.
Experts believe that cryptocurrency trading volumes in Pakistan could eventually grow to $300 billion. This figure is remarkably close to Pakistan’s entire Gross Domestic Product (GDP), which stands at around $400 billion. This shows just how significant the crypto market has become in the country.
Despite the huge amounts involved, Pakistan currently has zero regulatory framework for cryptocurrencies. This means there are no official rules about how people can buy, sell, or use digital currencies.
Speakers at the conference suggested that Pakistan should carefully legalize cryptocurrency. They recommended starting with a Central Bank Digital Currency (CBDC) as a first step. This government-backed digital currency could help reduce the costs of sending money from abroad and allow better government oversight of digital transactions.
Zafar Masud, President of the Pakistan Banks Association, pointed out that properly managing crypto assets could bring economic benefits worth $20 to $25 billion to the country. However, he also warned about serious risks, including cybersecurity threats and public distrust of digital currencies.
The State Bank of Pakistan has been working on developing its own digital currency prototype since 2022. Officials are planning to conduct pilot testing of this system soon, which could mark Pakistan’s entry into the regulated digital currency space.
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