0
0
Pakistan, a country struggling with economic instability, has now turned to cryptocurrency and blockchain technology in a bid to revive its deteriorating financial situation.
The government has launched a Crypto Council, aiming to regulate digital assets while attempting to attract foreign investment and combat its worsening poverty crisis.
🚨BREAKING: 🚨🇵🇰 Pakistan launches #Cryptocurrency council to regulate #Blockchain & digital assets. pic.twitter.com/LGKdPIwdXf
— Pushpendra Singh Digital (@PushpendraTech) March 16, 2025
Pakistan’s Economic Woes and the Shift to Crypto
With skyrocketing inflation, mounting foreign debt, and dwindling forex reserves, Pakistan has found itself in a dire economic position. Traditional financial institutions have repeatedly warned about the country’s unstable fiscal policies, making it difficult for Pakistan to secure international loans. Now, officials are looking toward cryptocurrency as a potential way to generate economic opportunities and bring in much-needed capital.
The Pakistan Crypto Council, backed by certain government officials and industry leaders, is expected to introduce blockchain-friendly policies. While this move is being pitched as a step toward financial innovation, critics argue that it is a desperate attempt by a struggling economy to stay afloat.
Global Concerns Over Pakistan’s Crypto Adoption
Pakistan’s history of financial mismanagement and links to illicit activities raises serious concerns regarding the use of crypto assets. Given the country’s track record with money laundering and terror financing allegations, many experts worry that unregulated crypto adoption could lead to misuse of funds under the guise of economic development.
Pakistan-like countries entering crypto and blockchain raise serious concerns over terror funding worldwide. With digital assets providing a way to move funds anonymously across borders, there is a growing fear that terrorist organizations could exploit Pakistan’s weak regulatory framework to finance illicit operations.
Western financial regulators have previously flagged Pakistan’s financial institutions for non-compliance with global anti-money laundering (AML) policies. The introduction of a state-backed crypto framework will undoubtedly raise questions about how the government plans to prevent misuse while ensuring legitimate economic growth.
Is This Move Too Late?
While Pakistan eyes crypto as a financial savior, global regulatory bodies are cracking down on digital assets to prevent illegal activities. The Financial Action Task Force (FATF) has already placed Pakistan on its grey list in the past due to concerns over terror financing and money laundering.
Now, with crypto being introduced, international watchdogs may once again increase scrutiny on Pakistan’s financial activities.
Many in the crypto industry are skeptical about Pakistan’s long-term strategy, questioning whether the country genuinely intends to foster innovation or if this is simply another short-term fix to an ongoing financial crisis.
Conclusion
Pakistan’s decision to launch a Crypto Council is being viewed with mixed reactions. While some believe that blockchain technology could modernize the country’s economy, others argue that the risks outweigh the benefits—especially given Pakistan’s history of financial mismanagement.
With regulatory concerns looming, the world will be watching closely to see whether Pakistan’s crypto gamble will actually lead to economic recovery—or if it’s just another failed attempt to stabilize a collapsing economy.
