The Pakistani government is proceeding rapidly to make cryptocurrencies a part of the nation's financial system, with the government set to allow them to be used by banks, currency exchange companies, and gold dealers, as per a media report released on Wednesday.
This move was deliberated in a high-level meeting on Tuesday, wherein the inclusion of digital assets in the country's financial system was on the agenda.
Dawn newspaper quoted Bilal Bin Saqib, CEO of the Pakistan Crypto Council (PCC), as presenting at the meeting how virtual currencies can be used in Pakistan. Saqib was made special assistant to the Prime Minister for blockchain and cryptocurrency in May, a position that is equivalent to a minister of state.
"We were informed that the cryptos are the future money of the new economic order," the newspaper quoted one banker in attendance at the meeting, who requested anonymity.
Attendees said there was a definite urgency from the government to take the cryptocurrencies at large scale and insert them quickly into the economy, the report further added.
Although some participants voiced concerns about the inherent risks and volatility associated with crypto assets, Saqib reportedly downplayed these speculative dangers.
Despite their global popularity, cryptocurrencies have largely remained outside the regulatory purview of most central banks. However, Pakistan may be poised to shift this trend.
Earlier this month, on July 9, State Bank of Pakistan Governor Jameel Ahmed announced that the central bank was getting ready to launch a pilot digital currency initiative. He also disclosed that efforts were under way to make a comprehensive legal framework final to handle virtual assets.
SBP and the Finance Division are working in partnership with the Pakistan Crypto Council to prepare extensive legislation and regulations for cryptocurrencies.
"Risks are still great, as the prices of cryptos are volatile with a huge margin, such as Bitcoin prices may surge from USD 35,000 to USD 70,000," a finance expert informed the newspaper. In spite of this, the expert added that both SBP and the government seem set to launch crypto-based transactions.
On Tuesday, bank officials, currency exchanges, and gold trade associations were informed of the possible advantages of digital assets.
It was also relayed that the central bank would handle the granting of licenses to institutions that want to conduct crypto trading.
A representative of a bank expressed the hope that they would open field offices in key cities in the future, which would bring virtual asset services closer to people and promote universal use of digital financial transactions.
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