By Mirza Abdul Aleem Baig
The launch of the Pakistan Crypto Council (PCC) marks a decisive moment in the country’s digital financial transformation.
With blockchain technology gaining momentum globally, Pakistan stands at a crucial crossroads; either embrace this disruptive technology with progressive policies or lag behind in the digital economy. However, the journey toward mainstreaming cryptocurrency and blockchain requires a well-structured roadmap that aligns with the country’s technological and socio-economic realities.
Pakistan’s financial infrastructure is still evolving, with a significant portion of the population unbanked. According to the World Bank, nearly 100 million Pakistanis remain outside the formal financial system, relying on cash-based transactions. The informal economy thrives due to a lack of financial inclusivity and trust in centralized institutions.
In addition, Pakistan’s technology adoption is growing, particularly in fintech. Mobile banking, e-commerce, and digital payments have seen significant traction in recent years. Blockchain technology offers an opportunity to enhance transparency, reduce fraud, and improve efficiency in sectors such as supply chain management, healthcare, and public administration. However, regulatory uncertainty around cryptocurrency has hindered its adoption and discouraged innovation in the sector.
To effectively drive blockchain adoption and integrate cryptocurrency within Pakistan’s economy, the Pakistan Crypto Council should focus on several key areas. One of the primary challenges in blockchain adoption is a lack of understanding among businesses, policymakers, and the general public. The Council should launch awareness campaigns, workshops, and training programs to educate stakeholders about the benefits and risks of cryptocurrency and blockchain technology.
Correspondingly, collaboration with universities and technical institutes to introduce blockchain courses can help build a skilled workforce for the future. The Council must also engage with policymakers, the State Bank of Pakistan, and the Securities and Exchange Commission of Pakistan to formulate clear guidelines that promote responsible crypto adoption while ensuring compliance with anti-money laundering and counter-terrorism financing measures.
Given the risks associated with digital assets, the Council should work towards establishing security standards for crypto exchanges, wallets, and blockchain-based applications. A regulatory sandbox can be introduced to test blockchain solutions before mass adoption, ensuring secure and resilient financial applications.
Blockchain can play a significant role in bringing financial services to unbanked populations. The Council should advocate for blockchain-based digital identities, peer-to-peer lending platforms, and decentralized finance solutions that align with Islamic banking principles to encourage adoption.
For crypto to thrive, Pakistan needs a business-friendly ecosystem. The Council should collaborate with fintech startups, e-commerce platforms, and remittance service providers to integrate crypto payments, smart contracts, and blockchain verification tools. Strategic success for the Pakistan Crypto Council depends on a well-coordinated effort that engages all stakeholders in the ecosystem.
The Council should establish a governance framework that brings together industry experts, regulators, and financial institutions to collaboratively shape policy decisions and regulatory approaches. This will help in mitigating resistance to change and addressing misconceptions regarding cryptocurrency. Building partnerships with international blockchain organizations and technology providers can ensure that Pakistan adopts global best practices while fostering local innovation.
The Council should also focus on creating a secure and transparent crypto marketplace by working closely with cybersecurity firms to strengthen data protection and fraud prevention mechanisms. Establishing a blockchain research and innovation center could facilitate pilot projects, ensuring that blockchain solutions are tested and validated before widespread adoption. Encouraging the integration of blockchain within public sector operations, such as land registries, tax collection, and supply chain monitoring, will demonstrate the real-world benefits of decentralized technology.
Over and above, fostering investor confidence through clear legal protections and risk mitigation strategies will play a crucial role in attracting venture capital and foreign direct investment into the crypto space. A phased implementation strategy, supported by a strong legal framework and continuous stakeholder engagement, will be essential for long-term success.
To ensure a balanced and progressive approach toward crypto and blockchain adoption, several policy recommendations should be considered. A legal framework recognizing cryptocurrencies as a legitimate asset class can provide confidence to investors and innovators. Pakistan should take inspiration from regulatory models in countries like China, UAE, Singapore, and the EU to develop a regulatory framework that balances innovation with financial stability.
A dedicated authority for blockchain oversight can provide guidance on compliance, security, and use cases across various industries. This authority can facilitate coordination between financial institutions, regulators, and blockchain enterprises. A favorable tax policy can encourage investment in blockchain startups. Offering tax incentives to companies working on blockchain solutions, particularly in areas like remittances, digital identity, and supply chain, can stimulate growth in the sector.
Pakistan’s “Digital Pakistan” vision aims to enhance technology adoption. The government should integrate blockchain solutions into public services, such as land registry, voting systems, and e-governance, to enhance transparency and efficiency. Engaging with global blockchain organizations, exchanges, and financial institutions can help Pakistan stay updated with global trends and best practices. A structured approach towards international collaboration can attract foreign investment and expertise into the country.
The Pakistan Crypto Council has a significant role to play in shaping the country’s blockchain and cryptocurrency landscape. By focusing on education, policy advocacy, financial inclusion, and regulatory clarity, the Council can help position Pakistan as a leader in the digital economy. The Council should work towards establishing public-private partnerships for blockchain projects, advocating for regulatory clarity and secure blockchain adoption, encouraging financial institutions to explore crypto-based services, and developing a long-term roadmap for a national blockchain strategy.
The Council should also play a proactive role in engaging with regional and international blockchain and crypto stakeholders to align Pakistan with global developments. The successful integration of blockchain and cryptocurrency in Pakistan requires a multi-stakeholder approach, where regulators, businesses, and consumers work together to create a thriving digital financial ecosystem. With the right policies and strategic implementation, Pakistan can equipage blockchain’s potential to drive economic growth and financial inclusion in the years ahead.
Author: Mirza Abdul Aleem Baig – President of Strategic Science Advisory Council (SSAC) – Pakistan. He is an independent observer of global dynamics, with a deep interest in the intricate working of techno-geopolitics, exploring how science & technology, international relations, foreign policy and strategic alliances shape the emerging world order.
(The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of World Geostrategic Insights).