A document prepared by the Pakistani policy advisory panel states that crypto-asset holders could earn Pakistan billions. However, this is only possible if the country creates the necessary regulatory framework to allow crypto assets to be used.
The Potential for Cryptocurrencies to 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.
Pakistan must, however, create a regulatory framework and a national strategy for cryptocurrency before adopting the policies. This, according to the report, must be done in order to protect the country’s economic interests.
According to the policy document, it recommends the recognition of cryptocurrency volatility as an asset class. The report also discusses how crypto-exchange-traded funds, or ETFs (cryptocurrency exchange traded funds), are expected to be attractive to both domestic and international investors. A crypto ETF like this could help Pakistan Stock Exchange gain its status 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.
Business Recorder reports that the Financial Action Task Force has also called for Pakistan to regulate cryptocurrencies.
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