Despite the government’s claim that cryptocurrency is risky and hence cannot be authorised, the discussion over whether it should be legalised in Pakistan persists, according to WealthPK.
As per a news report, State Bank of Pakistan Governor Reza Baqir spoke on a session at the 13th Karachi Literature Fest on Sunday, saying that the use of bitcoins in Pakistan carries more danger than reward.
State Bank Governor Reza Baqir agreed in a recent interview that cryptocurrencies are fraught with dangers. He stated that as part of SBP’s currency development activities, they are attempting to gain a deeper knowledge of upcoming currency.
According to statistics from the end of 2021, cryptocurrencies in Pakistan experienced an extraordinary gain of 711 per cent, with digital money outperforming all other investments.
According to a projection by the Federation of Pakistan Chambers of Business and
Technology, the worth of cryptocurrencies in 2021 will be more than $20 billion higher than the number of national assets.
Due to its potential benefits, such as a quick method for moving funds and conducting transactions, Pakistan’s cryptocurrency market has been rapidly growing. There are no restrictions on withdrawals or buys, and there is no transfer fee.
crypto appears to be amazingly secure because no middleman is engaged. Furthermore, unlike the financial system, cryptocurrencies are not subject to the same limitations (paperwork and documentation).
Furthermore, Reza Baqir stressed that financial inclusion and creativity are among the central bank’s objectives. Despite leveraging a valuable technological foundation, crypto-currencies are not relevant to the financial regulator’s goals.
According to State Bank, bitcoins are being utilized for money laundering and other illicit activities all over the world. Cryptocurrency transactions are impossible to monitor by police departments or authorities.
Cos of their invisibility, cryptocurrencies can be utilized for unlawful economic activity. According to him, in such cases, there is a danger of broader grey sectors and money outflow in nations like Pakistan.
Bitcoin is mostly utilised for trading and international money transfers in the Bitcoin world. We will not let it be used for these purposes.
In history, Pakistan’s financial network has been used for currency trafficking and extremist funding.
The State Bank of Pakistan has decided, according to the governor, that cryptocurrencies are currently more risky than advantageous for a nation. In the future, the bank will seek to have a deeper grasp of bitcoins.
According to the analyst, countries like China, India, and Russia have made the same judgments about cryptocurrency use, and it would be interesting to see how these techniques evolve.