Why Cryptocurrency is Necessary for Pakistan: Opportunities, Pros & Cons for the People
As the world steps further into the digital age, cryptocurrency has emerged not only as a financial revolution but also as a potential lifeline for countries like Pakistan, which face economic volatility, currency devaluation, and limited access to global finance. While the government now actively explores regulation through the newly formed Pakistan Crypto Council (PCC), it’s crucial for both citizens and policymakers to understand the real need, benefits, and risks of crypto in Pakistan.
Why Pakistan Needs Cryptocurrency
1. High Inflation & Currency Devaluation
The Pakistani Rupee has been consistently losing value against the US dollar. Cryptocurrency offers a hedge against inflation by giving people access to assets like Bitcoin or stablecoins (e.g., USDT) that retain global value.
2. Financial Inclusion for the Unbanked
Over 100 million Pakistanis remain unbanked. With crypto wallets accessible via smartphones, cryptocurrency can bring millions into a borderless financial system—without needing a traditional bank account.
3. Empowering Freelancers & Remote Workers
Pakistan is one of the top 5 freelancing countries in the world. Cryptocurrency enables faster, cheaper, and censorship-resistant payments for freelancers working with international clients—bypassing high remittance fees and payment delays.
4. Reducing Reliance on Cash & Corruption
Cryptocurrency transactions are transparent and traceable (on public blockchains), which can discourage money laundering, corruption, and under-the-table payments—issues deeply rooted in the cash-based economy.
5. Encouraging Tech Innovation & Startups
Crypto-based platforms (DeFi, NFT, blockchain startups) can attract foreign investment and create tech jobs for the youth. Countries like the UAE and Singapore have already capitalized on this; Pakistan can follow suit.
6. Safe Haven for Savings & Remittances
With nearly $30 billion in annual remittances, Pakistanis living abroad could use cryptocurrency to transfer funds more efficiently without relying on costly Western Union or Hundi systems.
Pros of Cryptocurrency for the Pakistani People
| Benefit | Impact |
| Financial Empowerment | Access to global assets and investment tools |
| Decentralized Access | No reliance on banks or political decisions |
| Faster Transactions | Cross-border payments in minutes |
| Youth Engagement | Learning crypto skills creates job opportunities |
| Freedom from Fiat Volatility | Store value in stablecoins like USDT or Bitcoin |
| Transparency | Smart contracts & blockchain improve accountability |
Challenges & Cons to Consider
While crypto offers immense potential, it’s not without risks, especially if not properly understood or regulated.
1. Scams & Fraud
Lack of awareness makes Pakistanis vulnerable to Ponzi schemes, fake ICOs, or fraudulent investment platforms.
2. Volatility
Cryptos like Bitcoin or Ethereum are highly volatile—prices can swing by 20–50% in days. Not suitable for short-term savings unless it’s a stablecoin.
3. Legal Uncertainty
Until clear regulation is in place, crypto still sits in a gray zone. Users could be affected by abrupt policy changes or regulatory crackdowns.
4. Cybersecurity Risks
Improper wallet management, phishing attacks, or forgotten passwords can result in irreversible loss of funds.
5. Energy Use & Sustainability
Mining-based cryptocurrencies consume high electricity. While this is less relevant for users, it does raise environmental concerns for national adoption.
What Should Pakistan Do Now?
- Legalize & Regulate: Through the Pakistan Crypto Council, the government should create a framework for safe and legal crypto usage.
- Educate the Public: Initiate awareness campaigns in Urdu and regional languages to protect users from scams.
- Support Innovation: Launch grants and tax incentives for blockchain-based startups.
- Create a National Stablecoin: Pakistan can issue a Pakistani Rupee-backed stablecoin to digitize the local economy without losing control over monetary policy.
Conclusion: Crypto is Not Just a Trend—It’s a Necessity
For a country like Pakistan, where traditional systems have often failed to include or empower the masses, cryptocurrency offers a rare second chance. It can give every citizen—from a Karachi freelancer to a Gilgit shopkeeper—the opportunity to participate in the global economy with freedom, control, and dignity.
It’s time for Pakistan to embrace crypto—not just as a digital asset, but as a tool for national transformation.