Pakistan to Explore Legalization of Cryptocurrency

[Riaz Haq]

Islamabad is establishing the Pakistan Crypto Council (PCC) to look into regulating and legalizing the use of cryptocurrencies, according to media reports. Cryptocurrency refers to digital currencies that can be used to make purchases or investments using encryption algorithms. US President Donald Trump's endorsement of cryptocurrencies and creation of a "bitcoin reserve" has boosted investors’ confidence in it.  

The State Bank of Pakistan, the nation's central bank, has not authorized any individuals or organizations to carry out the sale, purchase, exchange, and investment of digital currencies, coins, and tokens. But the country has not officially banned the use of cryptocurrencies either, allowing about 20 million users to engage in crypto transactions. “We are coming on number three and four globally and there are many blockchain technology opportunities in Pakistan", said Bilal Saqib, the chair of the PCC.  

Top Countries Ranked By Global Crypto Adoption Index. Source: Chain...

Saqib told Bloomberg that regulatory sandboxes were being developed to create fast-track systems for crypto startups, enabling them to operate within a controlled and compliant environment.

There are media reports that Pakistan is working on lower electricity tariffs to attract crypto mining and blockchain-based data centers, aiming to utilize surplus power at marginal costs while fostering growth in the digital asset industry. Demand for grid electricity has been declining amid a solar power boom in the country. 

Cryptocurrencies are managed in a blockchain, which is a digital ledger that utilizes blocks of data and time stamps to create a digital transaction record.  Similar to a traditional digital spreadsheet, a blockchain contains a log of transactions. However, it uses a distributed structure in which data is stored on multiple machines, and all copies need to match before a transaction is considered valid. Blockchain in finance allows for faster and cheaper transfers and more accurate accounting records. Blockchain technology is seen as the future of fintech (financial technology). It can help streamline tens of billions of dollars worth of remittances from overseas Pakistanis.

Downplaying the fear of the abuse of cryptocurrencies for criminal activity, Saqib told the media: “Globally 0.24 percent cryptocurrency transactions are used for wrong things,” he said. “We want to use this technology for other things like real estate, agriculture and to unlock their liquidity.”

Talking about taxation, Saqib said the government intends to implement a “balanced pro-growth tax structure” to encourage foreign investment in the crypto sector. He believes cryptocurrency can significantly boost Pakistan’s fintech sector, positioning the country as a regional leader in digital finance. 

There is a lot of interest in enabling the use of crypto currencies around the world. It is not just developing nations like Pakistan. There are many countries actively developing regulations for cryptocurrencies, with some groupings like the EU implementing measures to protect users and combat criminal activities, while others, like the US, are slowly approaching regulation through existing market regulators like the SEC and CFTC. The jury is still out on the potential for success of such efforts. 

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[Riaz Haq]

Digital Yuan: The New Era of Cross-Border Payments in Global Trade - Proshare


https://www.proshare.co/articles/digital-yuan-the-new-era-of-cross-....

In a move to redefine international finance, the People's Bank of China (PboC) has announced that its digital RMB cross-border settlement system will be fully connected to the ten ASEAN nations and six Middle Eastern countries, implying that about 38% of global trade could bypass the US dollar dominated SWIFT network.

Unlike SWIFT, where transactions take between 3 and 5 days and involve multiple intermediaries, China’s digital currency is set to bridge and slashes processing times to merely few seconds. A pilot project between Hong Kong and Abu Dhabi saw a payment settle in just about seven seconds, with fees dropping by 98%. The system’s speed and transparency are forcing a reevaluation of dollar-dependent frameworks, particularly in emerging markets.



Beyond speed, the digital RMB’s built-in compliance tools are drawing global attention. Its blockchain architecture enforces anti-money laundering protocols automatically, reducing fraud risks while maintaining traceability. During another test case between China and Indonesia, a cross-border payment was completed in eight seconds—a fraction of the time traditional methods require. This efficiency has already attracted 23 central banks to join the bridge test, with Middle Eastern energy traders reporting a 75% drop in settlement expenses.



As the US wields SWIFT as a sanctions tool against Russia, Iran and Others, China has been delibrate in building an alternative payment and settlement system for global trade. ASEAN’s RMB-denominated trade surged to 5.8trn yuan in 2024, with Malaysia, Singapore, and others adding the currency to their foreign reserves. Thailand’s first digital RMB oil transaction is another success story of the system, signaling a quiet but steady erosion of dollar dominance.



China’s strategy extends beyond payments. The digital RMB is woven into infrastructure projects like the China-Laos Railway and Jakarta-Bandung High-Speed Rail, forming a "Digital Silk Road" that pairs currency flows with trade corridors. European firms using the system for Arctic shipping settlements have seen efficiency gains of 400%. This fusion of physical and digital networks presents a holistic challenge to Western financial hegemony—one that transcends mere currency rivalry.



With 87% of nations now compatible with the digital RMB and cross-border volumes exceeding $1.2trn, the system’s momentum has become unmistakable. While Western policymakers debate hypothetical threats, China has deployed a working alternative spanning 200 countries.

-------------

Has China stolen a march over the mighty United States in the next currency war? According to many reports, the Digital Renminbi (RMB) based transactions have exceeded USD $1.2 Trillion! How did this happen? Is the SWIFT system going, going, gone?

https://youtu.be/QAI86QQgRkg?si=lk7Ug174M7jtKGi4

[Riaz Haq]

Pakistan warms up to digital assets with new bill

https://coingeek.com/pakistan-warms-up-to-digital-assets-with-new-b...


A new proposed bill in Pakistan has paved the way for the country to issue a central bank digital currency(CBDC) and laid the foundation for using digital currencies.

The federal government proposed amendments to the State Bank of Pakistan (SBP) Act, legalizing digital currencies in the South Asian nation. Local daily Express Tribune, citing sources within the government, reported that the bill has been forwarded to the federal cabinet for vetting, after which it will be sent to parliament for ultimate approval. The Ministry of Law has already vetted the bill and given it its green light.

While it proposes a raft of changes to running the country’s central bank, one of the standout proposals is on digital currencies. The Pakistani government has historically been anti-BTC, but the bill signals a massive shift in this stance.

The bill proposes to legalize digital currencies as legal tender for the first time. However, it defines digital currencies as “a digital form of currency issued by the [central] bank.”

The sources, who requested anonymity as the amendments have yet to be made public, didn’t disclose whether the bill specifically mentions public digital currencies.

If it extends to digital currencies, it would mark a great shift in policy for the SBP. The bank has been against digital currencies for years, alleging that they facilitated crime as they are anonymous (which, of course, isn’t the case). Last year, the then-Finance Minister Aisha Ghaus Pasha claimed that Pakistan would ban digital assets to maintain its good standing with the Financial Action Task Force (FATF), which had just taken the country off the dreaded Grey List. Pasha has since been replaced by the pro-digital assets Muhammad Aurangzeb.

Despite the lack of clarity, Pakistan is one of the world leaders in digital asset adoption. It ranked ninth in this year’s Chainalysis rankings as Central & Southern Asia and Oceania (CSAO) dominated the rankings, grabbing five of the top ten spots.

Away from digital assets, the amended bill offers legal clarity for SBP’s CBDC activities. Under the top bank’s functions, the bill allows it to issue the Pakistani rupee “in physical or digital or both forms.” SBP has been exploring a digital rupee for at least five years and expects to launch a pilot project next year.

[Riaz Haq]

Pakistan taps Binance co-founder Changpeng Zhao to steer its journey into digital finance innovation


https://cryptoslate.com/pakistan-taps-binance-co-founder-changpeng-...

Binance co-founder Changpeng ‘CZ’ Zhao has been named strategic adviser to the newly formed Pakistan Crypto Council; a move government officials described as a major step in the country’s push toward becoming a global leader in blockchain innovation.

Zhao’s appointment was announced on April 7 following a meeting in Islamabad chaired by Finance Minister Muhammad Aurangzeb.

The session brought together senior officials from Pakistan’s financial and regulatory agencies, including the heads of the State Bank of Pakistan, the Securities and Exchange Commission, and the federal ministries for law and information technology.

As a strategic adviser, Zhao will offer guidance on regulatory frameworks, infrastructure development, education, and digital asset adoption. He is expected to work closely with both government agencies and the private sector to support the growth of a secure and inclusive crypto ecosystem.

The council’s chief executive, Bilal Bin Saqib, said Zhao’s involvement would help position Pakistan as a forward-looking player in the web3 economy.

According to a statement from the Finance Division, Zhao also held separate meetings with Prime Minister Shehbaz Sharif and Deputy Prime Minister Senator Ishaq Dar during his visit.

Zhao highlighted Pakistan’s demographic advantage, pointing to its population of over 240 million — more than half of whom are under the age of 30 — as a sign of the country’s untapped digital potential.

The Pakistan Crypto Council, formed under the Finance Division in March, is led by the finance minister and includes top officials from key regulatory and legal institutions. The council is tasked with advancing digital asset policies and laying the groundwork for responsible blockchain innovation.

Pakistan currently ranks among the top 10 countries in global crypto adoption, with an estimated 20 million users and annual crypto transaction volumes exceeding $20 billion. With remittances reaching $35 billion each year, officials see strong opportunities to integrate blockchain technology into cross-border financial systems.

Saqib, who has previously represented Pakistan at global blockchain forums, including NFT NYC and ETH Barcelona, was appointed last month as the finance minister’s lead crypto adviser.

Zhao’s role adds international weight to the council’s mission, placing Pakistan in line with jurisdictions such as Singapore and the UAE that are positioning themselves as global hubs for digital finance.

[Riaz Haq]

Pakistan turns to bitcoin miners, AI data centers to use surplus power | Reuters

https://www.reuters.com/world/asia-pacific/pakistan-turns-bitcoin-m...

ISLAMABAD, April 9 (Reuters) - Pakistan plans to allocate part of its surplus electricity to Bitcoin mining and AI data centres, the head of Pakistan's Crypto Council and adviser to the finance minister said on Wednesday, adding it had held talks with several mining firms.
Pakistan's energy sector is grappling with challenges, including high electricity tariffs and surplus generation capacity.
The rapid expansion of solar energy has further complicated the landscape, as more consumers turn to alternative energy sources to mitigate high costs.
Bilal Bin Saqib, chief executive officer of the council, told Reuters the location of the mining centre will be finalised based on the availability of excess power in specific regions.
Documents seen by Reuters outline the role of Changpeng Zhao, founder of Binance, who will serve as a strategic adviser to the Pakistan Crypto Council.
Zhao was in May last year sentenced to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world's largest cryptocurrency exchange.
His role on the Pakistan council will include supporting blockchain infrastructure, advising on regulatory frameworks, and assisting with national initiatives, such as digital currency, mining, and youth education in blockchain technologies.
Saqib said the country has 15-20 million crypto users and is the third-largest global freelancer economy, with a growing fintech space.
"Pakistan is in the top 10 global crypto adopters despite it not being regularised," he said.
Saqib said he wants regulatory sandboxes, or safe environments for testing, to foster innovation and growth in the fintech and freelancer economy.
He also said upskilling Pakistan's youth in blockchain and AI can drive job creation and the economy, boosting exports through digital services, and positioning the country as a hub for emerging tech talent on the global stage.

[Riaz Haq]

Public-private collaboration is shaping Pakistan’s crypto economy

https://cryptoslate.com/public-private-collaboration-is-shaping-pak...

By aligning with Trump’s playbook, the Pakistan Crypto Council adopts a public-private collaborative approach, emphasizing the essential role of industry leaders in building the country's digital financial ecosystem.

The following is a guest post and opinion from Vince Kadar, CEO ofPolymath.

The global crypto landscape is evolving rapidly, and Pakistan is no exception. US President Donald Trump’s pro-crypto policies have influenced the Pakistani government’s stance, transforming it from a crypto-averse nation into one that is actively working to build a crypto-friendlyeconomy. Leading this shift is the Pakistan Crypto Council (PCC), which is playing a crucial role in formulating a comprehensive regulatory framework—a move reminiscent of similar efforts in the United States.

However, for Pakistan to establish itself as a true crypto hub and attract foreign direct investment (FDI), government efforts alone are not enough. Public-private collaboration is essential to educating policymakers, shaping legal frameworks, and ensuring the sustainable growth of Pakistan’s digital financial ecosystem.

Pakistan Crypto Council Follows the American Model
A look at recent global political events reveals the ideological foundation of the Pakistan Crypto Council and its policy direction.

In May 2023, Aisha Ghaus Pasha, a former Pakistani Minister of State for Finance and Revenue, said crypto would never be legal in Pakistan. The move came after the Financial Action Task Force (FATF) removed Pakistan from its gray list and set strict anti-money laundering restrictions.

A year later, on November 4, 2024, the Pakistani government changed its anti-crypto stance and considered regulating cryptocurrencies as legal tender. It’s not a coincidence that the US elections were held on the same day.

After Donald Trump won, he signed an executive order in January 2025 to form a Working Group on Digital Assets. The Group was an executive advisory council responsible for exploring a comprehensive digital asset regulatory framework.

Soon after, the Finance Ministry of Pakistan announced it was considering forming a “National Crypto Council” to legalize crypto. Interestingly, the announcement came after Pakistani Finance Minister Muhammad Aurangzeb met a foreign delegation, including Trump’s advisers, to discuss digital asset regulations.

The Pakistan Crypto Council was formed in March 2024, with the Finance Minister as Chairman and Bilal bin Saqib as CEO.

Acknowledging the US President’s role, Saqib said that Donald Trump is

“the biggest bullish catalyst for crypto in history.” He further noted, “Trump is making crypto a national priority, and every country, including Pakistan, will have to follow suit or will be at the risk of being left behind.”

In America, Trump doesn’t want the crypto industry restricted by federal agencies’ red tape and bureaucratic quagmire. Thus, he has ensured that private company executives, CEOs, and founders are onboarded to lead crypto innovation in his country.

Trump has appointed ex-Paypal COO David Sacks as the “White House A.I. & Crypto Czar” to “guide policy for the Administration.” He also hosted the first White House Crypto Summit, bringing private industry leaders together to discuss crypto legislation.

Following in Trump’s footsteps, the Pakistan Crypto Council has also adopted a public-private collaborative approach towards the crypto economy. Such joint partnerships between the government and industry leaders are essential for building Pakistan’s future-proof digital financial ecosystem.

[Riaz Haq]

Public-private collaboration is shaping Pakistan’s crypto economy

https://cryptoslate.com/public-private-collaboration-is-shaping-pak...

Private Enterprises’ Critical Role in Policy-Making
Recognizing the strategic importance of blockchain and crypto, Pakistan’s Prime Minister Shehbaz Sharif recently convened a high-level meeting in Islamabad to discuss investments in Bitcoin mining and asset tokenization. Key government officials, the CEO of the Pakistan Crypto Council, and representatives from major crypto firms attended.

During the discussions, Sharif directed the Pakistan Crypto Council to engage with private sector leaders to build infrastructure for Bitcoin mining and tokenization. One proposed initiative involves utilizing Pakistan’s excess energy to power Bitcoin mining operations.

The meeting also covered plans for a $3.5 billion Bitcoin mining infrastructure and leveraging blockchain technology to strengthen Pakistan’s economic resilience. Additionally, the focus was on creating compliant asset tokenization products and establishing a robust regulatory framework for digital assets.

This shift in governance—mirroring American strategies for crypto industry collaboration—highlights the critical role of private enterprises in shaping policy. Industry experts possess deep insights into market needs, making their input invaluable in crafting effective regulations.

According to a 2024 Chainalysis report, Pakistan ranked ninth in global crypto adoption. Citing this data, the Pakistan Crypto Council’s CEO said,

“With Pakistan ranking in the top 10 for global crypto adoption and an estimated 25M+ active users, alongside a $30B+ foreign remittance market, blockchain presents an unparalleled opportunity for innovation and growth. This is just the beginning; Pakistan is open for business.”

It is clear that for Pakistan to develop its crypto ecosystem securely and sustainably, the government cannot act alone. Just as the US integrates industry leaders into regulatory discussions, Pakistan must foster collaboration between government representatives, regulatory authorities, and crypto experts.

By aligning with Trump’s playbook, the Pakistan Crypto Council has already made a bold statement: “Pakistan is done sitting on the sidelines!” As a high-potential, cost-effective market with a young and tech-savvy workforce, Pakistan must harness the expertise of private enterprises to drive job creation and regulatory advancements.

With Pakistan accelerating its policy shift to strengthen the blockchain industry, a robust public-private partnership is the key to establishing the country as a leading crypto innovation hub in South Asia.

From Chainalysis. https://www.chainalysis.com/blog/2024-global-crypto-adoption-index/...

[Riaz Haq]

Pakistan inches closer to entering crypto world

https://tribune.com.pk/story/2542523/pakistan-inches-closer-to-ente...

ISLAMABAD:
Pakistan on Saturday announced that it has initiated a deal with President Donald Trump-backed World Liberty Financial to accelerate the journey towards legally adopting digital currencies, in a move that might follow a slew of legal changes to inch towards the crypto world.

The Ministry of Finance made the announcement following separate meetings between the World Liberty Financial (WLF) delegation and Chief of Army Staff General Asim Munir, Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar. The deputy prime minister is taking keen interest in promotion of crypto currencies.

"World Liberty Financial, the decentralized finance (DeFi) platform backed by the US President Donald Trump, has signed a landmark Letter of Intent (LoI) with the Pakistan Crypto Council (PCC) to accelerate blockchain innovation, stablecoin adoption, and decentralized finance (DeFi) integration across Pakistan," stated the Ministry of Finance.

The public announcement about signing the Letter of Intent was made a day after President Donald Trump commented on the recent wave of hostilities between India and Pakistan.

"I am very close to India and I'm very close to Pakistan…. they'll get it figured out one way or the other. I'm sure… I know both leaders", said Trump.

The finance ministry stated that the WLF delegation - including Zachary Folkman, Zachary Witkoff (son of Steve Witkoff who's the United States Special Envoy to the Middle East), and Chase Herro - met with Pakistan's leadership including the Prime Minister, Chief of Army Staff, Deputy Prime Minister, Minister of Information and Minister of Defence to formalize cooperation.

It added that cooperation will mark a major step toward positioning Pakistan as a global leader in the digital finance revolution.

Early this month, Pakistan also appointed Changpeng Zhao, founder of Binance and one of the most influential figures in Web3, as a Strategic Advisor to the Pakistan Crypto Council. Zhao had also met with Shehbaz Sharif, Ishaq Dar, Finance Minister Muhammad Aurangzeb, and Punjab leadership, in addition to meeting with other key stakeholders.

Reuters reported last month that the Trump family has a claim on 60% from World Liberty Financial operations once the core business gets going.

World Liberty disclosed in January that the Trump family had taken control of the business. Two of its co-founders, crypto entrepreneurs Zak Folkman and Chase Herro, were replaced as the controlling parties of World Liberty by an entity in which the Trump family holds a 60% stake, according to Reuters.

The WLF goal is to allow people to access financial services using crypto currencies and without intermediaries like banks in what is called decentralized finance, or DeFi. World Liberty Financial last month raised $550 million selling so-called governance tokens. Most of those sales took place after Trump's election win in November, Reuters calculations show.

The finance ministry said that Pakistan's proactive approach demonstrates its commitment to embracing the next wave of financial innovation.

"The government has signaled plans to very soon announce comprehensive crypto legalization policies, further strengthening Pakistan's position as one of the fastest-growing crypto markets in the world", according to the Finance Ministry.

[Riaz Haq]

From Google AI search for "Can the entire financial system move to blockchain?"

While a complete transition of the entire financial system to blockchain is unlikely in its current form, blockchain technology is poised to significantly reshape the industry. The financial sector is already adopting blockchain for various applications, and experts predict it will play a major role in the future of finance.
Here's a more detailed look:
Reasons for a Shift Towards Blockchain:
Increased Efficiency and Speed:
Blockchain offers faster and more secure transactions compared to traditional systems, which can reduce settlement times and costs.
Reduced Costs:
By eliminating intermediaries and streamlining processes, blockchain can significantly lower transaction costs.
Enhanced Transparency and Security:
The decentralized nature of blockchain provides a transparent and secure record of transactions, which can help combat fraud and improve trust.
New Financial Products and Services:
Blockchain enables the development of new financial products and services, such as digital assets, tokenized securities, and smart contracts.
Improved Accessibility:
Blockchain can facilitate more inclusive financial services by making them more accessible to individuals who may not have access to traditional banking services.
Challenges to Full Adoption:
Regulatory Uncertainty:
.
The lack of clear and consistent regulations across different jurisdictions can create uncertainty and hinder the adoption of blockchain.
Scalability Issues:
.
Some blockchain networks struggle with scalability, which can limit their ability to handle high transaction volumes.
Interoperability:
.
Different blockchain networks may not be able to easily interact with each other, which can hinder the development of a fully integrated financial system.
Security Concerns:
.
While blockchains themselves are secure, there are still security concerns associated with the broader financial system, such as the need to protect user data and prevent unauthorized access.
Integration with Existing Systems:
.
Integrating blockchain with existing financial systems can be complex and require significant investment.
The Future of Blockchain in Finance:
Hybrid Approaches:
Many financial institutions are likely to adopt a hybrid approach, combining the benefits of blockchain with the expertise of traditional banking systems.
Specialized Use Cases:
Blockchain is likely to be used for specific applications within the financial sector, such as cross-border payments, trade finance, and security tokenization.
Continued Innovation:
As blockchain technology matures and regulatory frameworks develop, we can expect to see further innovation and adoption in the financial industry.
In conclusion, while a complete transition to blockchain is not imminent, blockchain technology is poised to play a major role in the future of finance, offering a range of benefits and opportunities for financial institutions and individuals alike.