Will Pakistan Reap the Benefits of Crypto or Not?

02:19 PM | 28 Dec, 2020
Will Pakistan Reap the Benefits of Crypto or Not?
Source: Image: academy.aaxpro.com

The Provincial Government of Khyber Pakhtunkhwa passed a resolution in the Provincial Assembly to legalize cryptocurrency in Pakistan. The decision brought the crypto discussion to the table of investors, micro-finance specialists and policy regulators.  Crypto may be a foreign concept to many people in Pakistan yet the country will have to adapt to the changing technological world sooner or later.

In the present century where data security remains a primary concern. Countries with the evolution of crypto have started overhauling their regulatory frameworks to fetch the maximum utility crypto has to offer. Crypto may be the answer to the rising banking frauds. The banking sector suffers a loss of Rs.1 billion every year to online frauds in Pakistan. The 12th International Information Security conference declared Pakistan as most vulnerable to online fraud.

Recently, a Public Benefit Corporation Blockstack, based in New-York, launched its Pakistan Chapter. Co-founded by Dr Muneeb Ali, a computer scientist hailing from the twin cities; the Pakistani Princeton graduate has brought his internationally recognised project to his homeland. Blockstack works to provide a decentralized computing network based on bitcoin. The Pakistan chapter is paving a way for the untapped potential of the Pakistani market for cryptocurrency.

With Pakistan currently overhauling its digital framework at the governmental level, it must excavate the opportunities cryptocurrency has to offer.

Cryptocurrency is a digital currency whose market is expected to grow by 39.7 billion USD in 2025. It is a medium of exchange that is digital, encrypted, and decentralized. The decentralization promises security. Henceforth, making it one of the safest mediums. Cynthia Lummis, US Senator endorsed the considerable upsides of the cryptocurrency. Investors and economist foresee a sizeable increase in cryptocurrency investments.

With the ongoing discussions about the opportunities and challenges of the cryptocurrency for a country like Pakistan, we may devise a conclusive and comprehensive framework. It will not only benefit the financial sector but also our academic research framework.

The last decade has seen an unprecedented increase in crypto-specific research labs conducting an extensive study to understand the process behind cryptocurrency and its primary blockchain technology.

Technology is ever-evolving and ever wondrous. We have witnessed the evolution of currency. However, it seems as if now is the time for another milestone in the form of cryptocurrency. Pakistan must make opportune use of this innovation for better GDP, safer and less vulnerable investment systems and high-end research.