According to a document produced by a Pakistani policy advisory board, the country is likely to earn billions of dollars from crypto-asset holders. Yet for this to happen, the country first needs to create the appropriate regulatory framework for crypto assets.
Cryptocurrencies Could Boost Reserves
Pakistan may potentially raise billions of dollars from crypto assets held by its nationals or by residents with dual citizenship, a policy document produced by the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has said.
According to a report in The Business Recorder, the document titled “Prospect of Cryptocurrencies: A Context of Pakistan Policy Brief” asserts that Pakistan could also use the crypto assets to help boost the country’s reserves.
However, before it adopts the recommendations of the policy document, Pakistan needs to craft a regulatory framework as well as a national cryptocurrency strategy. This, according to the report, must be done in order to protect the country’s economic interests.
Concerning the volatility of cryptocurrencies, the policy document reportedly recommends their recognition as an asset class. In addition, the report also explains how cryptocurrency exchange-traded funds (ETFs) are likely to attract both domestic and foreign investors. Such a crypto ETF could ostensibly help the Pakistan Stock Exchange regain its position among emerging economies.
On the other hand, the report argues that Pakistan’s failure to adopt crypto could result in cryptocurrency holders moving their assets to countries that are more friendly to digital currencies.
The Business Recorder report reveals that the Financial Action Task Force (FATF) has similarly called on Pakistan authorities to consider regulating cryptocurrencies.