What Is the Current Situation of Cryptocurrency in Pakistan?

What Is the Current Situation of Cryptocurrency in Pakistan?

Pakistan, a country situated in the South Asian region, is one of those nations where the crypto craze is spreading like wildfire. According to a Chainanalysis' 2021 Global Crypto Adoption Index, Vietnam is ranked at the top with India and Pakistan ranked second and third, respectively.

The adoption of cryptocurrencies is growing rapidly in Pakistan, as the country is struggling with a developing economy. However, a proper adoption of cryptocurrencies on a national level is yet to be seen, and if it happens, it can have a positive impact on the country’s economy, considering how fast the world is transitioning towards a digital economy.

Many people in the world, including the citizens of Pakistan, were highly attracted to the world of cryptocurrencies, especially Bitcoin, after the famous bull run of 2017. In that bullish run, Bitcoin experienced an increase of 1,318% while other digital currencies like Ethereum and Litecoin increased by 9,162% and 5,046%, respectively.

However, this boom of digital currencies in Pakistan didn’t go well for the authorities as the Federal Board of Revenue (FBR) started legal cases against those people who were involved in Bitcoin trading. The authorities believed that those involved in cryptocurrencies were also playing a big part in money-laundering activities, a phenomenon that is illegal all around the world.

During that time, Bitcoin (BTC) was priced at 200,000 PKR, However, at the time of writing, it is somewhere around 7,254,100 PKR. It is obviously a missed opportunity by the Pakistani state authority which failed to realize the potential of Bitcoin and the crypto world. Even minor investments could generate huge returns and help the government with stabilizing its economy.

Current Situation of Cryptocurrency in Pakistan

Although Pakistan missed out on a huge opportunity back in 2017, the time is still there as many crypto analysts believe Bitcoin will touch $100,000 by the end of 2021. The good news for local crypto enthusiasts is that cryptocurrency is not illegal in Pakistan, rather it falls in a gray area as the government has no specific rules against it.

However, this has not stopped the Pakistanis from trading cryptocurrencies. Many industry leaders believe that the country can truly cash on cryptocurrencies considering the mass adoption it is experiencing among its citizens.

Where Is the Crypto Market Headed in Pakistan?

The growing enthusiasm related to cryptocurrencies can be seen in the youth in the country, but just like the rest of the world, the older generation is quite skeptical about it due to the volatility that exists in the crypto market. Although Pakistan is globally ranked at third place when it comes to crypto adoption, the real wave of cryptocurrencies is yet to be seen in the country. It will most likely happen when the local authorities acknowledge the importance of cryptocurrency and give it a legal status in the country.

Created on 30th Sep 2021