Unlike physical cash, cryptocurrency in other words is digital cash that can be used to buy or trade items online. While the world has been investing in cryptocurrencies like Bitcoin in the past few years, the lack of regulation of these digital currencies has made them highly volatile. Example of Bitcoin reaching an all-time high of $69,000 and then falling by 30% following a meme tweet by Elon Musk puts in question the credibility of cryptocurrencies, if they can be so affected by mere tweets.
Crypto and Contoversy
Cryptocurrencies are a controversial topic due to the lack of state regulation and feared by many to be the next way of committing financial fraud. However, there is no doubt that cryptocurrencies are the future and an easy and viable method of payment. Talking about Pakistan and cryptocurrency, Pakistan is ranked 15th in the world when it comes to the trading of crypto, raking in upwards of a billion dollars in crypto-cash in the last few years. The credit of which certainly goes to Waqar Zaka for approaching government officials regarding the legalization of cryptocurrencies. While cryptocurrencies are, not to say illegal, the state bank has instructed or in other words, banned banks from accepting and trading crypto. The scenario is such that while you can individually trade crypto, it is not regulated by a state authority so, in case of a fraud or a scam, the courts cannot entertain you.
This is exactly what Waqar Zaka is aiming to change, owing to his popularity amongst the youth for being a dare-devil and an influential icon. He has been striving for the regulation of the crypto in Pakistan and with recent development in the crypto scenario in Pakistan. It is evident, that he has been successful in ambition. However, many have criticized Waqar Zaka after the Bitcoin crashed recently, for luring in the financially inexperienced youth to invest in Bitcoin. Waqar is not to be blamed specifically, after all since crypto is not regulated, it is highly volatile. Bad timing, maybe?
The efforts by Waqar Zaka have successfully brought cryptocurrency to the discussion in the parliament. In addition to that, the Sindh High Court has ordered the government to come up with a regulatory framework for cryptocurrencies in Pakistan. Will crypto trading be legal and regulated in near future? Will state back crypto as a currency for buying and selling of items/assets? We don’t know for sure.