The Pakistani government is ready to accelerate the adoption of cryptocurrencies within banks, foreign exchange firms and gold trading and held a high-level meeting on it on Tuesday, a leading daily from the country reported.
State Bank of Pakistan (SBP), finance ministry, commercial banks and currency exchange companies met senior security officials to deliberate on strategies to bring down the US dollar rate, stabilise the exchange rate, and prevent dollar smuggling to neighbouring countries Afghanistan and Iran, the country’s Dawn newspaper reported.
The meeting reportedly centred around cryptocurrency adoption. Bilal Bin Saqib, CEO of the Pakistan Crypto Council (PCC), delivered a presentation on the potential use of virtual currencies in the country.
In May, Saqib was appointed as the prime minister’s special assistant on blockchain and cryptocurrency, holding the rank of minister of state.
The Telegraph Online had earlier this month reported how the UK-based entrepreneur has been globetrotting, making high-level connections and pitching Pakistan as a promising destination for anyone hoping to make a quick fortune in the digital finance world
“We were told that the cryptos are the future currency for the changed economic world,” a banker told Dawn after Tuesday’s meeting.
According to attendees, the presentation and the Q&A session on crypto dominated the meeting, taking up nearly “80 per cent time” of the discussion.
Multiple participants of the meeting told Dawn that the government appeared eager to adopt cryptocurrencies at scale and integrate them into the economy as quickly as possible.
While concerns were raised about the volatility and risks associated with cryptocurrencies, Saqib reportedly downplayed their speculative nature.
Globally, although virtual currencies have gained popularity, central banks have largely refrained from formal regulation. However, Pakistan seems to be taking a different route.
On July 9, SBP Governor Jameel Ahmed stated that the central bank was preparing to launch a pilot project for a digital currency and was in the final stages of drafting legislation to regulate virtual assets.
Currently, the SBP and the Finance Division are collaborating with the Pakistan Crypto Council to create a comprehensive legal and regulatory framework for virtual assets.
“Risks are still high, since the prices of cryptocurrencies fluctuate with wide margin, like Bitcoin prices could jump from $35,000 to $70,000,” a financial expert told Dawn. However, he added, “both the SBP and the government were ready for crypto transactions.”
During Tuesday’s meeting, representatives from banks, forex companies, and gold traders were briefed on the potential benefits of virtual currencies. Officials also indicated that the SBP would begin issuing licenses for crypto trading to banks and other financial institutions.
One banker suggested that field offices might be set up in major cities to facilitate access to virtual assets and promote crypto-based transactions.
