Despite a ban on cryptocurrencies, Pakistan has emerged as the 8th largest crypto economy in the world, holding a shocking $8 billion in digital assets! How did a country facing economic struggles build such a massive crypto fortune? Let’s break it down in simple terms.
Pakistan’s Hidden Crypto Boom
A recent report by the Asian Development Bank (ADB) revealed that Pakistanis own around $8 billion worth of crypto, even though the government banned it in 2018. This puts Pakistan ahead of many wealthier nations in crypto adoption.
But here’s the big question: How did this happen?
Peer-to-Peer (P2P) Trading
Since banks don’t allow crypto transactions, Pakistanis turned to P2P trading (direct deals between buyers and sellers). Platforms like Binance P2P and LocalBitcoins became popular, helping people bypass restrictions.
Remittances & Inflation Hedge
With a weak rupee (at 285 PKR per dollar rate at the time of writing) and high inflation, many Pakistanis see crypto as a safe haven for their money. Overseas workers also use crypto to send remittances home, avoiding high bank fees.
Government’s Secret Crypto Move?
Recently, Pakistan hired Changpeng Zhao (CZ), the former CEO of Binance, as a cryptocurrency advisor. This suggests that the government may be reconsidering its ban and exploring regulated crypto adoption to boost the economy.
Tech-Savvy Youth Driving Growth
Pakistan has a huge young population, with many tech experts and freelancers earning in crypto. Cities like Karachi and Lahore have active crypto communities trading and mining despite restrictions.
What’s Next for Pakistan’s Crypto Market?
If Pakistan legalizes crypto, it could attract huge investments and create jobs. But for now, the $8 billion mystery shows that banning crypto doesn’t stop people—it just pushes them underground!
Final Thought:
Will Pakistan lift its crypto ban and become a global crypto hub? Only time will tell, but one thing is clear: Pakistanis love crypto, ban or no ban!