A recent Statista report revealed that Pakistan’s crypto industry was on the rise, with its volume expected to reach US$35.52m by 2028, up from US$19.59m in 2024. The report went on to show that the user penetration rate was expected to rise from 1.76% this year to 2.23% in the four years. Regarding the average revenue per user, the amount equaled to US$4.68 in 2024. Why is the industry poised to grow? You may ask.
Well, this country has come a long way especially due to technological advancements like mobile, which have made accessing trading services more convenient. According to DataReportal – Global Digital Insights, about 77.8% of the country’s population had mobile connections. As such, making BTC to PKR conversions has become seamless, whether on a laptop, smartphone or tablet. Reading this article, you will discover more reasons why Statista anticipates the industry to grow and other fascinating insights.
The government’s position
Just in April this year (2024), during a meeting in Riyadh, the government, through the Minister of Finance, expressed intentions of incorporating a digital currency. This came after Muhammad Aurangzeb, the country’s finance minister, noticed that male counterparts dominated women after they received money from the government. The women felt that getting money through a digital wallet could help avert such instances.
Pakistan received about Rs9.4 trillion in annual revenues, which Muhamad felt was still way low. Part of why the annual revenues have remained low is because almost all of Pakistan’s economy is undocumented, which the government believes is among its top undoing. By introducing a digital currency, the government will likely improve revenue collection and enhance documentation of its undocumented citizenship.
Pakistan’s CBDC may come in handy
During the second half of 2023, the governor of the State Bank of Pakistan, Jameel Ahmad, confirmed that Pakistan would see the launch of a central bank digital currency (CBDC). The plans were to have this currency launched by 2025.
The country seems to be catching up with other countries in the region, including India, which has already conducted several pilot trials. Well, although Pakistan seems to be lagging behind, especially after laws governing the future digital currency were tabled in 2019, Mr. Ahmad emphasized the need for patience, as they didn’t want to deliver something that would pose any danger to the citizens.
Precautions of this nature can give the impression of the government’s commitment to safe interactions, which may encourage crypto’s adoption. Do you actually know that in 2022, the country came sixth globally, just a spot behind the US in terms of crypto adoption?
We have already mentioned that several women in the country are feeling financially excluded and how cryptocurrencies can help deal with that. On top of that, Pakistan has recently experienced high inflation, getting to levels as high as 20.7%. Businesses and individuals might, therefore, be compelled to turn to alternatives like crypto to evade the consequences of inflation.
More Benefits for those living abroad
You might be wrong to think that only those living within Pakistan will benefit from the adoption of digital currencies. Statistics show that there are about 60 million Pakistanis living abroad, who are sometimes faced with the challenges of transferring money at expensive rates for long durations.
During a statement where he was addressing the media in Karachi, Salimullah, SBP Deputy Governor, highlighted that introducing the digital currency was one of the government’s efforts to improve remittances and financial transactions. Pakistanis living abroad will no longer need to worry about extended processing times and huge transfer fees whenever they want to transact with their relatives in the country – which are some of the benefits of crypto.
The appeal of blockchain
Crypto is built on a blockchain network that offers benefits like decentralization which are very necessary in today’s world. In 2023, the Pakistan Banks’ Association collaborated with Avanza Group to come up with a blockchain-based Know Your Customer solution that will ensure timely exchange. SBP seemed to love the idea and encouraged all banks to welcome the deal.
In the healthcare sector, companies are taking advantage of this technology to streamline medical record management, clinical trial processes, etc. Top learning institutions like Comsats and LUMS have been seen encouraging students to develop innovative blockchain-based solutions that can help meet these needs. In another place, a 2022 report confirmed that Pakistan’s Customs was partnering with Tradelens, a blockchain platform, to optimize the import and export process.
Real estate is another sector that has been drawn by the magical benefits of blockchain. You might have probably heard of the DaoProp and Xstate platforms. The companies are rapidly establishing their hold of the Pakistani market by using blockchain ledgers to enhance transparency and security.
Final Words
Well, despite the fact that there are contradicting opinions about crypto in the Pakistani economy, some research bodies like Statista still believe that its adoption will continue to increase. Among the reasons why this might be possible is that digital currencies can help ensure financial inclusion. Plus, the currencies are built on blockchain technologies, which seems appealing to industries like real estate, supply chain and many others.
