Thursday, September 29, 2022
HomeLaw & PoliticsPakistan Central Bank clears its stance on use of Cryptocurrency

Pakistan Central Bank clears its stance on use of Cryptocurrency

The Pakistani central bank is not seeing much use for cryptocurrency. Yet, the regulator adds that Bitcoin has been misused for “a variety of purposes” around the world, including “human rights breaches, people smuggling, money laundering, and a variety of other things.”

As per the report,  the director of the State Bank of Pakistan (SBP), Reza Baqir, highlighted cryptocurrency during a board discussion at the 13th Karachi Literature Festival on Sunday.

The governor of Pakistan’s central bank stated, “Crypto has no meaningful use cases.”The governor of Pakistan’s central bank stated:

When we explore the value proposition presented by cryptocurrency right now, the only use cases that have been brought forward have just been exchanges.

Baqir additionally said that Pakistan’s financial system is used for money  terrorism financing.

Notwithstanding, the governor of the central bank stated that people want the regulator to enable bitcoin to be used, exchanged, and sent internationally.

On adding to that, the Governor of the State Bank of Pakistan says Every new piece has some benefits and some risks…It’s a responsibility of a policymaker to analyse the balance… in particular, to determine if the benefits outweigh the risks when it comes to the use of cryptocurrencies in Pakistan. However, Baqir explained  the risks related to bitcoin significantly exceed the benefits.

Pakistan’s government is deciding whether or not to regulate bitcoin. However, a high-level inter – ministerial group set up to make recommendations on whether cryptocurrencies could be allowed under Pakistani law is opposed to regulation. In January, the committee presented its findings to the Sindh High Court, suggesting a blanket ban on cryptocurrency.

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