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Business Recorder
06-06-2025
- Business
- Business Recorder
Cryptocurrency's future in Pakistan
Legalization of cryptocurrency in Pakistan has evolved into a complex legal and financial dilemma. The Government of Pakistan established Pakistan Crypto Council (PCC) in February 2025 under chairmanship of the Federal Finance Minister, Senator Muhammad Aurangzeb. Appointment of Bilal Saqib as CEO of the PCC and subsequently as Special Assistant to the Prime Minister on blockchain and cryptocurrency has marked a symbolic elevation of digital assets in the national discourse. The PPC's announcement to allocate 2,000 megawatts of energy to crypto mining and formation of the Pakistan Digital Assets Authority are bold steps, but the licencing frameworks are yet to be developed. Although the reported appointment of World Liberty Financial as a key advisory firm has added international optics, domestic procedural clarity is still not available. Despite the passage of four months since the PPC's inception no 'white papers', consultation drafts, or public engagement forums to solicit expert feedback or industry alignment are in the offing. Absence of such foundational discourse tends to create regulatory ambiguity and a vacuum of informed public policy. The industry is operating in an atmosphere of speculation where neither the legal model nor its operational dynamics are known and this opacity frustrates stakeholders, impedes innovation, and delays essential compliance-building measures. Announcement by Bilal Saqib'at the Bitcoin 2025 Conference in Las Vegas declaring Pakistan's intention to establish a government-led Bitcoin Strategic Reserve was a dramatic disclosure and sudden escalation. Reference to the United States as an inspirational model also added geopolitical colour, but the declaration raised significant alarm. The notion of building strategic reserves in a highly volatile asset like Bitcoin without defined risk controls, legal backing, or multilateral support, especially under an active programme of the International Monetary Fund (IMF) creates a scenario fraught with institutional, constitutional, and international tensions. The IMF does not recognize cryptocurrency as reserve assets or legal tender, complicating any alignment with sovereign commitments. The existing legal framework, including the Constitution of Pakistan, the State Bank of Pakistan Act, 1956 and the Pakistan Currency Act, 1950, prohibits any parallel currency system or strategic reserves outside officially sanctioned instruments. Concerns intensify when factoring in risks such as foreign exchange reserve mismanagement, cyber security threats, lack of transparency, limited liquidity utilization, reputational exposure, and fragile policy credibility. The subsequent clarification by the CEO of PCC during a televised interview has further complicated the matter. His assertion that Pakistan would build its Bitcoin reserves using seized crypto assets rather than public funds revealed a glaring misunderstanding of international asset forfeiture law. In jurisdictions such as the United States, ownership of seized crypto remains with the accused until judicial forfeiture is finalized. The legal transfer process mandates court orders, after which assets are either returned to victims, retained by agencies, or liquidated into fiat and deposited into the treasury. The US government does not hold seized cryptocurrencies in reserve but auctions them post-forfeiture. The exposure of CEO of PCC, lacking comprehension and accurately communicating these mechanisms, reflects poorly on regulatory preparedness of the country. It has also eroded already fragile credibility of Pakistan on the global stage. Despite its economic fragility, Pakistan remains among the top ten crypto-friendly nations. The projected number of cryptocurrency users in Pakistan is expected to reach 28.9 million by 2026, with projected revenues of $2.4 billion in 2025. Legalization of crypto in such a volatile economic environment poses existential risks to monetary sovereignty and financial sector stability. The unregulated adoption of crypto could erode confidence in the rupee, weaken the ability of State Bank of Pakistan (SBP) to manage inflation, and incentivize capital flight. The risk of financial disintermediation grows as users shift to decentralized financial systems, bypassing the regulated banking infrastructure. The situation poses a dual risk of systemic instability and heightened scrutiny from global regulatory bodies, particularly Financial Action Task Force (FATF) and the IMF. A more appropriate strategy under these conditions is to recognize crypto strictly as a digital asset class, not as legal tender. The asset treatment model preserves SBP's independence while allowing innovation under strict regulatory conditions. The formation of a regulated ecosystem of licensed Virtual Asset Service Providers must be the cornerstone of Pakistan's digital asset strategy. Exchanges, wallets, and custodians should operate within a tightly regulated framework governed by Security & Exchange Commission of Pakistan (SECP) and SBP with mandatory know-your-client (KYC), anti-money laundering (AML) protocols, transaction reporting, and audit mechanisms. The development of a regulatory sandbox environment would enable controlled experimentation under the supervision of regulatory bodies. This approach will support technical learning, policy formulation, and risk detection without national exposure. The cross-border use of crypto must be initially restricted to prevent capital outflows and preserve foreign exchange stability. The government must distance itself from any notion of sovereign crypto reserves and instead focus on integrating blockchain into public services, such as tokenized bonds, digital land registries, welfare programmes, and logistics tracking. The need for dedicated digital asset legislation is critical at this point of time. The legal framework should classify various token types, outline custodial responsibilities, define consumer protection mechanisms, and ensure compliance with global financial regulations. Regulatory capacity must be developed in tandem. Training programmes must be established for regulators, law enforcement, forensic auditors, and judicial officials to develop the institutional fluency required for effective oversight. The international investment narrative around Pakistan's digital future must be repositioned. Pakistan should host a 'Crypto Summit' in Islamabad, followed by regional events in Lahore and Karachi. These summits should not pose as PR campaigns but as policy-shaping forums, connecting global blockchain firms with Pakistani fintechs, banks, academic institutions, and startups. These platforms must also educate and guide the next generation of developers, regulators, and entrepreneurs. The goal must be the formation of a trust-based public-private ecosystem capable of managing, scaling, and governing digital asset innovation securely and sustainably. The broader institutional ecosystem must be evaluated for performance and reform. The PCC, despite bold announcements, lacks transparency. It has also failed to launch consultative processes, technical papers, or stakeholder engagements. Its work remains confined to speeches and symbolic declarations without measurable progress or inclusion. The passive role of the Special Investment Facilitation Council (SIFC) must also be addressed. The SIFC must assume leadership in developing Pakistan's crypto economy, beginning with the orchestration of global summits enabling the regulatory apparatus to scale in line with international best practices. The strategic vision should prioritize safe integration, regulatory maturity, and private sector participation. The global digital economy presents Pakistan with a unique opportunity to redefine itself as a competitive, secure, and innovation-driven hub. In Pakistan, the future of crypto is bright, anchored in its youthful demographic, entrepreneurial appetite, and capacity to leapfrog institutional bottlenecks through decentralized infrastructure. The right legal architecture, international cooperation, and governance transparency can turn this potential into a powerful national asset. Copyright Business Recorder, 2025
Express Tribune
30-05-2025
- Business
- Express Tribune
Bitcoin Strategic Reserve
Listen to article Pakistan's recent announcement of a state-backed Bitcoin Strategic Reserve is the latest in a series of major shifts in global crypto policy and is earning simultaneous praise and consternation. Though the policy change comes on the heels of the US setting up its own strategic crypto reserve — the largest in the world — the US reserve has been populated with only recovered and seized crypto, and the country has been clear that it does not intend to get involved in mining. Pakistan, on the other hand, must learn from the experiences of El Salvador, which became the first country to fully legalise crypto in 2021 and the first to have a crypto-induced economic crash a year later. Despite Bitcoin having recovered its price since El Salvador has had to scale back crypto purchases and mining to meet the terms of an IMF bailout that was necessitated by the failure of crypto to help improve its teetering economy, which advocates had promised was a sure thing — something that should ring familiar for Pakistanis. Our Bitcoin czar, Bilal Bin Saqib, recently said assets would "never, ever be sold" as a long-term bet on decentralised finance. While this may help a country benefit from price appreciation in the long run, Pakistan's foreign reserves are often little more than pocket change, leaving little wiggle room to spend on crypto without sacrificing elsewhere. Also, Bilal skipped over the point that Bitcoin is still technically illegal in Pakistan under SBP and SECP rules. The pivot to crypto is a high-stakes gamble which, if executed transparently, could attract foreign investment and foster financial inclusion. But the current approach feels more like a technocratic fantasy, that could prove to be two steps back for the economy and a great leap forward for corruption. After all, the Bitcoin advisors include Binance, which does business with the children and companies of President Trump, and World Liberty Financial, which is majority-owned by the Trump family and includes investors who faced fraud charges until the Trump administration dropped the cases against them. Or maybe that is the goal — investors have dropped billions into Trump-owned crypto products. Most of that money will end up in the Trump family's pockets, while the investors have seen benefits ranging from pardons to favourable White House policies.
Gulf Insider
25-05-2025
- Business
- Gulf Insider
Bitcoin to $1 Million by 2028? Arthur Hayes Says It's Inevitable.
Arthur Hayes, the outspoken co-founder and former CEO of BitMEX, is no stranger to volatility, be it in markets or in politics. But when he predicts that Bitcoin will hit $1 million by 2028, it is a macroeconomic thesis grounded in decades of monetary policy missteps, geopolitical recalibration, and the slow-motion collapse of the fiat system born in 1971. A System Built On Sand Hayes sees Bitcoin's price action as a structural response to the erosion of financial sovereignty. When the U.S. decoupled the dollar from gold in 1971, it created a global financial system reliant on credit issuance, massive debt accumulation, and central bank intervention. 'The people who benefited the most are those who issue credit – commercial banks,' Hayes explains. 'And anyone who challenges their dominance tends to fall afoul of regulators.' From his perspective, Bitcoin's rise is not a random fluke, it's a very clear reaction. A decentralized, scarce, programmable asset stands in stark contrast to the highly centralized, inflationary fiat model. The Trump Factor And The Strategic Reserve Illusion Hayes is less impressed by politicians claiming to embrace Bitcoin, especially when it is there to serve a populist narrative. Take President Trump's Executive order on the Bitcoin Strategic Reserve, while the move grabbed headlines and delighted many in the Bitcoin and crypto community, Hayes remains sceptical. 'Governments buy assets for political reasons and sell them for political reasons,' he warns. 'Why tether your financial future to the whim of politics?' He doesn't see this as actual adoption, but only as a tactical appeal to voters disillusioned by deindustrialization, wage stagnation, and the rise of big finance. Still, the political interest in Bitcoin, no matter how superficial, signals a shift in how governments perceive the role of digital assets in a post-dollar world. Stablecoins Will Lead, But Bitcoin Will Reclaim The Narrative In the short term, Hayes argues that stablecoins, particularly USD-backed ones like USDT, will see greater real-world adoption, especially in regions with limited banking access. 'People want dollars, not volatility,' he notes, citing the Middle East, as a major growth market for stablecoins. Afterall, the Arab region's population is only approximately 40% banked according to the ESCWA Annual SDG Review 2025. But that doesn't mean Bitcoin loses its edge in the stablecoin game. Quite the opposite. Hayes predicts Bitcoin dominance will rise to 70% just before we will see unprecedented price action to $1 million. Why $1 Million Bitcoin Isn't As Wild As It Sounds At the heart of Hayes' forecast is one simple principle: the fiat system must inflate or collapse. Either path fuels Bitcoin's rise. 'The amount of money that will need to be printed just to maintain the current economic structure is staggering,' he explains. 'That's what's going to propel Bitcoin.' Whether or not governments buy Bitcoin is secondary. Their policies of debt expansion, currency debasement, and geopolitical fragmentation will drive more capital into decentralized stores of value. In other words, Bitcoin doesn't need the Government's buy-in or permission to win. We just let governments do their thing, and this leads to Bitcoin winning. Beyond Price: A New Financial Era Hayes' prediction of $1 million isn't rooted in hype. It's based on deep scepticism about the longevity of the current financial order and belief that a decentralized alternative is not only possible but necessary. 'This isn't just about crypto,' Hayes concludes. 'It's about dismantling a system that no longer works and building something better.' Whether Bitcoin reaches $1 million by 2028 remains to be seen. But the conditions that could make it happen are already here.
Yahoo
12-05-2025
- Business
- Yahoo
5 Reasons You Need at Least 1 Bitcoin
Bitcoin has captivated many investors due to its incredible long-term returns, but its volatility has kept some investors on the sidelines. The leading cryptocurrency regularly sees sharp fluctuations that can push it up or down by 10% in a matter of days. Explore More: Try This: Not every investor wants to deal with that level of uncertainty, but you can't question the results if you compare it to popular benchmarks like the S&P 500 and Nasdaq Composite. The cryptocurrency also recently reclaimed $100,000 per coin and may head higher. If you are on the fence with Bitcoin, these are some of the reasons to consider getting started. Although Bitcoin doesn't produce revenue and net income growth like publicly-traded corporations, the returns are unquestionable. Bitcoin has risen by 68% over the past year and has soared by 978% over the past five years. The S&P 500 and Nasdaq Composite haven't even doubled over the past five years. Bitcoin has proven to be a viable way to multiply your money. While results are not guaranteed, many investors use long-term returns to assess momentum and investors' appetite for an asset. Bitcoin has hit the mark for a long time despite the narrative around uncertainty. Find Out: Last year was a big one for Bitcoin. Spot Bitcoin ETFs began trading on Jan. 11, 2024, and many financial institutions rushed to offer their own. BlackRock, Fidelity, ARK Invest, VanEck, and Grayscale are some of the firms that launched Bitcoin ETFs. Each of those ETFs puts more money into Bitcoin, and that leads to upward pressure on the price. Bitcoin ETFs have made the digital currency more accessible for everyday investors, and this trend can catapult Bitcoin higher in the long run. President Donald Trump established the Bitcoin Strategic Reserve with an executive order. This strategic reserve can boost the demand for crypto and lead to more gains for investors. While the Bitcoin Strategy Reserve is relatively old news, it can ripple into individual states. For instance, Arizona recently became the second U.S. state to create a Bitcoin Strategic Reserve. It's possible for more states to follow the trend, and each commitment requires more Bitcoin purchases. Bitcoin also serves as a valuable inflation hedge that gives it more value as central banks print more money. There are only 21 million Bitcoins available, and it is impossible for anyone to increase the supply. That's the beauty of Bitcoin's decentralized blockchain. Investors who want a historically successful asset that can minimize inflation risk may want to take a closer look at this alternative asset. Universal currencies give people more control and allow them to avoid foreign exchange fees. If an American goes to the United Kingdom, they have to pay fees to convert their U.S. dollars into British pounds. Then, if you travel to any country in the European Union, you have to convert some of your U.S. dollars or remaining British pounds into euros. It's a cumbersome and expensive process for regular travelers who make frequent purchases. Some credit cards also have foreign transaction fees that hike costs for paperless transactions. Bitcoin avoids those fees when it is used for purchases. The long-term premise of the cryptocurrency is attractive for people who want to save money on foreign exchange fees. Right now, Bitcoin is still in its early innings compared to fiat currencies. At some point, Bitcoin's annualized growth rate will slow down. However, Bitcoin's nature as a universal currency should boost its appeal in the years ahead. More From GOBankingRates Mark Cuban: Trump's Tariffs Will Affect This Class of People the Most How Far $750K Plus Social Security Goes in Retirement in Every US Region How To Get the Most Value From Your Costco Membership in 2025 12 SUVs With the Most Reliable Engines Sources Bitcoinist, 'Arizona Passes Bitcoin Reserve Bill, Becomes Second US State.' This article originally appeared on 5 Reasons You Need at Least 1 Bitcoin
Yahoo
01-05-2025
- Business
- Yahoo
Eric Trump Warns Banks Could Be 'Extinct In 10 Years' If They 'Don't Watch What's Coming,' Touting Blockchain As 'Better' Alternative
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Eric Trump, executive vice president of the Trump Organization and the younger son of President Donald Trump, criticized the current financial system as outdated and inefficient, suggesting that cryptocurrency offers a faster and more cost-effective alternative. What Happened: Speaking this week in Dubai, he warned that traditional banks could become obsolete within the next decade if they fail to adapt. In a thorough critique delivered during his visit to the UAE, which is an emerging hub for digital currencies, Trump called SWIFT "an absolute disaster." Trending: Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies. He said, "there's nothing that can be done on blockchain that can't be done better than the way that the current financial institutions are working," in a conversation with CNBC. "The modern financial system is broken, it's slow, it's expensive," he said. "If the banks don't watch what's coming, they're going to be extinct in 10 years." He argued that decentralized finance allows for private, low-cost transactions and said that the U.S. banking system "favors the ultra-wealthy" and is politically weaponized. To establish his point about the increasing irrelevance of banks, Trump said: "You can open up a DeFi app right now, you can open up any cryptocurrency app, and you can send money, wallet to wallet, instantaneously, without the expense, without the variability" of banks. Why It Matters: Trump's remarks come at a time when major banks like JP Morgan are creating blockchain platforms and crypto services to keep up with the rapid scale of digital transformation. His comments also coincide with increasing regulatory scrutiny of crypto markets after notable episodes of volatility and collapses. Meanwhile, the Trump administration has fashioned itself as a champion of digital currencies, and the Trump family is entangled with initiatives such as the World Liberty Financial and American Bitcoin. Eric Trump's comments come just ahead of his father's scheduled trip to the Gulf from May 13 to 16, with stops in the UAE, Saudi Arabia, and Qatar. The visit will mark the first time a U.S. president has visited the Emirati sheikhdom since George W. Bush in 2008. Trump, dubbed the 'crypto president,' recently completed his first 100. While he delivered on his campaign promise to establish a national Bitcoin Strategic Reserve, funded with coins seized through asset forfeiture, the move hasn't put a stop to Bitcoin's slide. The cryptocurrency, which hit an all-time high of $109,000 before Trump's inauguration, has since fallen more than 13%. Analysts attribute the decline to increasing economic turmoil catalyzed by Trump's aggressive tariff policies. Despite a brief rebound from a low of $76,000, Bitcoin remains far below its peak. Read Next: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase. A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase. Image Via Shutterstock Send To MSN: Send to MSN This article Eric Trump Warns Banks Could Be 'Extinct In 10 Years' If They 'Don't Watch What's Coming,' Touting Blockchain As 'Better' Alternative originally appeared on Sign in to access your portfolio
