A questionable pivot towards crypto

Recent moves by Pakistan’s government to cultivate a cryptofriendly environment starkly contradict the long-held warnings of its central bank.

In 2018, the State Bank of Pakistan (SBP) issued a stern warning cautioning financial institutions against the high risks of virtual currencies. Yet, in a dramatic policy reversal, the government has launched initiatives such as the Pakistan Crypto Council, seemingly eager to capitalise on global digital trends without first addressing unresolved regulatory deficiencies.