Cryptocurrency is gaining popularity in Pakistan as an increasing number of individuals and businesses are turning to it for investments and transactions. According to the 2021 Chainalysis Global Crypto Adoption Index, Pakistan ranks third among the top ten countries with the highest number of crypto and bitcoin users.
One of the reasons for the growing popularity of cryptocurrency in Pakistan is its ability to enable real-time, safe, and faster money transfers at a low transaction fee, as there is no intermediary involved. Another factor is the ongoing economic crisis in the country, leading to inflation and devaluation of the Pakistani rupee against the US dollar, making Bitcoin an alternative investment option.
Bitcoin has also shown potential in cross-border transactions, providing a faster, cheaper, and more secure option for sending money across borders. Moreover, blockchain technology underlying Bitcoin has the potential to revolutionize various sectors, including finance, healthcare, and logistics, among others. In Pakistan, several blockchain-based startups aim to disrupt traditional industry practices by leveraging this technology’s efficiency and transparency.
According to a report by the Federation of Pakistan Chamber of Commerce and Industry, the country recorded $20 billion of crypto value in the fiscal year 2020-2021, which was an unusual hike of 711%. The biggest crypto exchange that Pakistani investors use is Binance, followed by other platforms like Localbitcoins.com and Binomo.
While 67% of crypto-investors in Pakistan are using centralized services, just 33% are using decentralized financing platforms to make crypto-related transactions. Pakistan-based social media groups and YouTube videos in Urdu explaining how to trade and mine cryptocurrency have thousands of followers and views.
Cryptocurrency provides a new avenue for the unbanked or underbanked population to access financial services, such as remittances, loans, and savings. Bitcoin’s decentralized nature means that anyone with an internet connection can participate in the network, irrespective of their geographical location.
Overall, Pakistan’s interest in cryptocurrency is increasing, with the government and businesses exploring its potential in various sectors. However, there are still concerns about its regulation and security, and the need for more education and awareness among the general public.
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