‘Crypto Has No Use,’ says Governor of Pakistan’s State Bank

The Governor of Pakistan’s State Bank expressed an intriguing viewpoint on cryptocurrency.
As the governor detailed their strategy, the comment conveyed a negative viewpoint.
The governor also spoke about Pakistan’s overall financial situation.
Riza Baqir, Governor of the State Bank of Pakistan (SBP), has expressed an unexpected yet intriguing viewpoint on cryptocurrency. The statement was made at the 13th Karachi Literature Festival during a panel discussion.

During the panel, Dr. Baqir stated that the technology behind cryptocurrency is “extremely valuable” and has the ability to solve many of the world’s current financial issues. However, he also stated that every new product has advantages and disadvantages. He said that it is his responsibility to maintain the balance and determine whether the advantages outweigh the hazards.

The panellist also questioned whether crypto’s lack of awareness is a concern, saying:

The regulator or law enforcement agency has no way of knowing who is conducting transactions and for what reason. As a result, there are numerous instances of bitcoin misuse around the world, including human rights violations, human trafficking, money laundering, and a variety of other issues.

He also mentioned that the SBP’s top priority was to increase financial inclusion in order to reduce financial system abuse. He further noted that Pakistan’s inclusion on the Financial Action Task Force (FATF) grey list made this goal much more vital.

In other words, despite the fact that Pakistan has been under scrutiny since 2018 for several allegations of money laundering and aiding terrorism, crypto is not prohibited. Despite this, the FATF has urged the government to regulate the business.

It’s nonetheless worth noting that cryptocurrency trading and mining have exploded in Pakistan. Nonetheless, the governor stated that cryptocurrency carries more hazards than benefits, and that the SBP is striving to find a proper way to dealing with cryptocurrencies in the future.


Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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