Pakistan likely to make billions from cryptocurrency – emerging markets

The country is likely to earn billions of dollars from crypto asset owners, according to a document prepared by a Pakistani policy advisory board. To do this, however, the country must first create the appropriate regulatory framework for crypto assets.

Cryptocurrencies could increase reserves

Pakistan could potentially raise billions of dollars from crypto assets held by its nationals or by residents with dual citizenship, said a policy document prepared by the Federation of Pakistan Chambers of Commerce & Industry (FPCCI).

according to a Test report in The Business Recorder, the document titled “Prospect of Cryptocurrencies: A Context of Pakistan Policy Brief” claims that Pakistan could also use the crypto assets to replenish the country’s reserves.

However, before adopting the policy paper's recommendations, Pakistan needs to develop a regulatory framework and a national cryptocurrency strategy. According to the report, this must be done to protect the country's economic interests.

Regarding the volatility of cryptocurrencies, the policy document reportedly recommends their recognition as an asset class. Additionally, the report also explains how cryptocurrency exchange-traded funds (ETFs) are likely to attract both domestic and foreign investors. Such a crypto ETF could reportedly help the Pakistani stock exchange regain its position among emerging markets.

On the other hand, the report argues that Pakistan's failure to adopt cryptocurrencies could lead to cryptocurrency holders moving their assets to countries that are friendlier to digital currencies.

The Business Recorder report shows that the Financial Action Task Force (FATF) has similarly called on Pakistani authorities to consider regulating cryptocurrencies.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and author in Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.

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