According to a document produced by the Pakistan Policy Advisory Committee, the country may earn billions of dollars from crypto asset holders. However, to do this, the country first needs to create an appropriate regulatory framework for crypto assets.

Cryptocurrency can increase reserves

A policy document produced by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) stated that Pakistan may raise billions of dollars from crypto assets held by its nationals or residents with dual citizenship.

According to a Report In the business recorder, a document entitled “Cryptocurrency Prospects: The Background of Pakistan’s Policy Briefing” asserts that Pakistan can also use crypto assets to help increase the country’s reserves.

However, before adopting the recommendations of the policy document, Pakistan needs to develop a regulatory framework and a national cryptocurrency strategy. According to the report, this must be done to protect the country’s economic interests.

Regarding the volatility of cryptocurrencies, according to reports, the policy document recommends that they be recognized as an asset class. In addition, the report explains how cryptocurrency exchange-traded funds (ETFs) may attract domestic and foreign investors. On the surface, this cryptocurrency ETF can help the Pakistan Stock Exchange regain its position in emerging economies.

On the other hand, the report believes that Pakistan’s failure to adopt cryptocurrencies may cause cryptocurrency holders to transfer their assets to countries that are more friendly to digital currencies.

The business records report shows that the Financial Action Task Force (FATF) also called on the Pakistani authorities to consider regulating cryptocurrencies.

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Terence Zinwara

Terence Zimwara is an award-winning journalist, writer and writer in Zimbabwe. He has written a large number of articles about the economic difficulties of some African countries and how digital currencies can provide a way out for Africans.