Over the years, cryptocurrencies have rapidly gained popularity worldwide, growing a market of $2.5 trillion, equal to the market value of the world’s largest company. It is evident that with the advancements in technology such as metaverse, NFTs, and cryptocurrency trading itself, individuals, businesses, and nations can grow. The cryptocurrency wave in Pakistan has created a global impact contributing greatly to cryptocurrency’s overall market value. However, the adverse opinions of the government officials of Pakistan are alarming for cryptocurrency holders. We asked one of the finest Crypto experts from Pakistan, Umair Orakzai, to shed his view on how legalizing cryptocurrency is a way forward for Pakistan. Mr. Umair is one of the finest and influential crypto experts and trainers having a community that is growing day by day and convincing the world’s best crypto exchanges to open trading for Pakistanis. Recently, KuCoin announced a collaboration with Umair’s community, ChuffGang.
Importance of Cryptocurrency in Pakistan
Pakistan was ranked #3 in Global Crypto Adoption Index in the year 2021, and indeed it is growing day by day. Pakistanis are trading and holding cryptocurrency worth $20 billion, more than Pakistan’s foreign reserves. It is pertinent to mention that such rapid adoption in just a few years is not for a Ponzi scheme, as said by the government officials, but, of course, because of the potential that the crypto market has that drives people crazy for it. People of Pakistan are trading cryptocurrency and are keen to learn the crypto market dynamics too. We will see many crypto experts rising from Pakistan in the coming years. Also, many big exchanges are opening trading for Pakistanis like the KuCoin exchange, and the ones already operational are looking to resolve issues faced by Pakistani users.
When asked about something that keeps the hope of legalization of crypto alive, here is what Umair has to say, “One thing that I am grateful to see is the fact that despite all the fuss going around, Pakistani crypto traders are still standing firm. The unity, consistency, and efforts of all crypto influencers altogether might help government understand the need for digital currencies and assets.”
Why should Government Regulate Cryptocurrency in Pakistan?
Pakistan can dominate the crypto market if regulated. The unemployment rate in Pakistan has increased due to Covid-19 causing financial instability for many people. I believe that Pakistan’s fight is against the pandemic and also against hunger, poverty, and economic instability. The crypto market brings opportunity for everyone, be it unemployed, underprivileged, youth, old-aged, retired whatsoever. People can make a good profit out of crypto, support their families, and escape the hand-to-mouth loop.
The economy is unstable, the inflation is at its all-time high, and the unequal distribution of wealth increases the poverty rate day by day. The government is missing out on a very big opportunity on a macro level. It can impose taxes on income generated from cryptocurrency, solving many issues of a developing country like Pakistan.
What if the Government decides to ban cryptocurrency trading in Pakistan?
Pakistan is in a debt trap of approximately $50 bn. The Government should tell the people their action plan as to how Pakistan will pay off the debt and solve inter-country problems such as unemployment, inflation, poverty, and hunger. We have very few solutions to a list of problems. It is high time that Pakistan focuses on changing its status from a developing to a developed country. It will surely take time, but accepting the changes and advancements in technology will pave the way for opportunities for Pakistan. The acceptance and alignment of policies according to the changing technology are important for Pakistan right now. It has already missed many opportunities due to ignorance. For instance, companies like Amazon and PayPal could’ve been a great addition to Pakistan’s economy, but unfortunately, Pakistan failed to discover the opportunity at the right time. The government later realized what they’ve missed and now is promising PayPal and Amazon in Pakistan. I can guarantee the same case with cryptocurrency.
Cover image via Umair Orakzai
