According to media reports, SBP Governor Reza Baqir warned during a panel discussion at the 13th Karachi Literature Festival on Sunday that using cryptocurrency poses more risk than advantage for Pakistan.
Bitcoin is mostly used for speculating and sending money abroad, which SBP does not allow.
According to Reza Baqir, the central bank’s key goals are financial inclusion and innovation. Cryptocurrencies, while a beneficial technological foundation, are irrelevant to the financial regulator’s purposes.
Governor State Bank stated that cryptocurrency is being utilised for money laundering and other illegal activities globally. No regulator or law enforcement agency can monitor cryptocurrency transactions.
The governor said Pakistan is on the FATF’s grey list (FATF). The FATF is closely monitoring Pakistan’s banking system, so we must be extra cautious and watchful. He noted that while cryptocurrency is not illegal in Pakistan, the FATF has advised us to properly regulate it.
Pakistan’s financial sector has been used to launder money and fund terrorism.
“SBP has concluded that the risks of utilising cryptocurrencies outweigh the benefits for a country like Pakistan,” said the governor.
China, India, and Russia have all made similar judgments regarding cryptocurrency use, and it is important to monitor their future development.
