Pak govt accelerates push for cryptocurrency adoption: Report

Islamabad | The Pakistan government is ready to fast-track the adoption of cryptocurrencies for banks, foreign exchange companies, and gold trading, according to a media report on Wednesday.

The discussions on the matter took place during a high-level meeting on Tuesday, aimed at integrating virtual currencies into the financial system.

The meeting saw Pakistan Crypto Council (PCC) CEO Bilal Bin Saqib giving a presentation on the usage of virtual currencies in Pakistan, the Dawn newspaper reported.

In May, Saqib was appointed the Prime Minister's special assistant on blockchain and cryptocurrency, with the status of a minister of state.

“We were told that the cryptos are the future currency for the changed economic world,” the report quoted a banker as saying on condition of anonymity.

Participants of the meeting said it seemed like the government was in a hurry to make use of cryptocurrencies on a large scale and make them part of the economy as soon as possible, the paper said.

Some have raised questions about the high level of risk involved, but Saqib played down the speculative risks.

Although cryptocurrencies have been in vogue for years, most central banks around the world have steered clear of any attempts to regulate them.

On July 9, State Bank of Pakistan (SBP) Governor Jameel Ahmed had said that they were preparing to launch a pilot for a digital currency, and were finalising legislation to regulate virtual assets.

The SBP and Finance Division are currently engaged with the Pakistan Crypto Council to develop an appropriate legal and regulatory framework for virtual assets.

“Risks are still high, since the prices of cryptocurrencies fluctuate with a wide margin, like Bitcoin prices could jump from USD 35,000 to USD 70,000,” a financial expert said.

However, he claimed that both the SBP and the government were ready for crypto transactions.

On Tuesday, banks, foreign exchange companies and gold traders were briefed on the benefits of such currencies.

Participants of the meeting were told that the central bank would issue licenses for crypto trading banks and other financial institutions.

One banker hinted at the possibility of opening field offices in major cities to make virtual assets easily accessible and promote virtual transactions.