The debate over whether cryptocurrency should be legalised rages in Pakistan despite the central bank’s stance that since the digital currency carries risks, it cannot be legalised, WealthPK reported.
State Bank Governor Reza Baqir recently said there were high risks associated with crypto currencies. He said SBP was working to develop a better understanding of the future currencies.
In 2021, Pakistan documented an abnormal rise of 711% in cryptocurrencies with the virtual currency performing the best in all the assets. The value of cryptocurrency recorded in 2021 was about $20 billion, which was over and above the federal reserves, according to research conducted by the Federation of Pakistan Chambers of Commerce and Industry.
Crypto currencies have emerged rapidly in the Pakistani market because of their potential benefits as they ensure easy and faster transfer of funds and transactions. They carry minimum or no transfer fee, no limit on withdrawals and purchases. They appear highly secure as they do not involve any intermediary. Further, there are no restrictions on crypto currencies like the banking sector (documentation and paperwork).
