Islamabad, July 30 (PTI): The Pakistan government is set to accelerate the integration of cryptocurrencies into its financial system, particularly for banks, foreign exchange entities, and gold trading, as reported by local media on Wednesday.
The initiative was the focus of a high-level meeting held on Tuesday, aimed at incorporating virtual currencies within the country's economic framework.
The Pakistan Crypto Council (PCC) CEO, Bilal Bin Saqib, delivered a presentation on the potential use of virtual currencies in Pakistan, according to Dawn newspaper.
In May, Saqib was appointed as the Prime Minister's special assistant on blockchain and cryptocurrency, with the status equivalent to a minister of state.
“We were informed that cryptocurrencies are poised to become the future currency of an evolving economic world,” a banker remarked under anonymity, as per the report.
The meeting's attendees noted a sense of urgency within the government to integrate cryptocurrencies on a large scale, and to incorporate them promptly into the economy.
Although some participants expressed concerns about the inherent risks, Saqib downplayed the speculative nature of cryptocurrencies.
While cryptocurrencies have gained popularity globally over the years, the majority of central banks have been cautious in their regulatory approach.
Earlier this month, on July 9, State Bank of Pakistan (SBP) Governor Jameel Ahmed announced plans to initiate a pilot project for a digital currency, with legal frameworks for virtual assets being finalized.
The SBP and the Finance Division are actively collaborating with the Pakistan Crypto Council to draft suitable legal and regulatory standards for virtual assets.
“The risks are significant, given the substantial volatility in cryptocurrency prices, such as Bitcoin potentially moving from USD 35,000 to USD 70,000,” a financial expert noted.
Nevertheless, the SBP and the government seem prepared for the advent of cryptocurrency transactions.
On Tuesday, a briefing was conducted for banks, foreign exchange companies, and gold traders to highlight the advantages of these digital currencies.
It was suggested during the meeting that the central bank would oversee the issuance of licenses for banks and financial institutions to engage in crypto trading.
One banker indicated the potential establishment of field offices in major cities to enhance access to virtual assets and support virtual transaction growth.
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