Govt launches Pakistan Crypto Council to foster crypto-based innovations

In an attempt to jump on the global trend of crypto adoption by major powers, Islamabad has launched the Pakistan Crypto Council (PCC). According to credible reports, the government intends to integrate blockchain technology into Pakistan’s financial landscape to regulate digital asset holdings.

A press release from the Finance division revealed that the PCC has full support from the federal government. Moreover, the newly formed council intends to foster crypto-based innovations in Pakistan.

Islamabad had not been actively planning to create a federal entity to regulate cryptocurrency. However, a visit from a delegation from the United States fast-tracked efforts to form a regulatory body.

As per reports, a meeting between Finance Minister Muhammad Aurangzeb and Trump’s advisors for ‘digital assets’ took place in February. After this meeting, the finance ministry started work on the establishment of the PCC.

Many believe that Pakistan would never have jumped on the ‘crypto trend’ had it not been for the US. This is because up until last year, Islamabad and the State Bank of Pakistan (SBP) were staunch opponents of crypto.

The SBP issued warnings against engaging in transactions surrounding crypto with a previous finance minister, even declaring that digital assets such as crypto would remain illegal forever.

However, the government’s stance against crypto has softened considerably in the past few months. Islamabad recently appointed Bilal Bin Saqib, an entrepreneur, to the post of chief advisor to the finance minister.

The finance division’s press release outlined how the formation of the PCC could bring about innovation in the ‘financial landscape’ of the country. However, some fear the possibility of capital flight via crypto channels.

This fear is warranted as the legalisation of crypto could witness the anonymous transfer of funds to offshore destinations, effectively bypassing the capital controls that are currently in place. Moreover, since Pakistani rupees will be used to purchase digital assets, the value of the national currency could depreciate as individuals attempt to move their funds out of Pakistan.

However, the federal government remains confident in its ability to monitor transactions effectively. Reports reveal that a multitude of government bodies and officials will be responsible for regulatory oversight – which could help curb instances of capital flight.

As per the finance division’s statement, the PCC’s board members will include the chairman of the Securities and Exchange Commission, the governor of the SBP and the IT and law secretaries.