In the absence of supervision, Pakistanis have invested a lot of money in digital assets. According to new research, Pakistanis hold approximately US$20 billion in cryptocurrency, which is said to be more than their central bank’s foreign exchange reserves.

Research shows that Pakistanis hold 20 billion U.S. dollars in cryptocurrency, and the government urges regulations

According to a new report from the Pakistani Federation of Industry and Commerce (FPCCI) quoted by the Pakistani border and other media, Pakistan has more cryptocurrencies than foreign exchange reserves. The study conducted by the Association’s Policy Advisory Board (PAB) estimates that Pakistanis will hold $20 billion worth of cryptocurrency during 2020-21.

The author points out that digital currencies like Bitcoin have rapidly gained popularity in the past few years.Pakistan’s market grew by 711% in 12 months, climbing to third place in this year’s global encryption adoption rate index Calculated by Chainalysis, a blockchain forensics company. The country is second only to India and Vietnam.

However, the total amount of real cryptocurrency holdings may be much higher than the figures mentioned in the PAB report. Business Recorder pointed out in an article that many residents of the country are buying coins through peer-to-peer transactions, and these investments remain largely undiscovered. Cryptocurrency is still a gray area in Pakistan because the country’s current legislation does not include digital assets.

At the press conference, FPCCI Chairman Nasir Hayat Magoon urged Islamabad to introduce a government policy to promote cryptocurrency transactions and pointed out neighboring countries India Steps have been taken to implement some rules. Magoon insists that such regulations are needed so that investors can trade their coins in the country and not in places like this Dubai.

The report recommended that Pakistan adopt a legal framework that complies with the guidelines issued by the Financial Action Task Force and the International Monetary Fund. The study was released after Ali Mohamed Khan, Minister of State for Parliamentary Affairs of Pakistan. Indicated In October, the government generally did not oppose cryptocurrency investment. Pakistani courts also called on executive and legislative powers to introduce encryption regulations.

Do you hope that the Pakistani authorities will soon supervise the country’s encrypted space? Please let us know in the comments section below.

Lubomir Tasef

Lubomir Tassev is a tech-savvy journalist from Eastern Europe. He likes Hitchens’ famous quote: “Being a writer is my nature, not what I do.” In addition to encryption, blockchain and financial technology, international politics and economics Are the other two sources of inspiration.