Reza Baqir, Governor of the Central Bank of Pakistan (SBP), stated in his speech at a festival that cryptocurrencies carry a lot of risk and have losses.
SBP Governor Baqir said, “13. Reiterating his stance on cryptocurrencies at the March 6 panel held as part of the “Karachi Literature Festival”, he reiterated that crypto is for Pakistan. it does more harm than good told.
Speaking during his speech, Baqir said that the technology behind crypto is “absolutely useful” and has the potential to solve many of the world’s current financial problems, but that everything new is benefits and risks He added that he was.
Every new thing has some benefits and risks. It is up to regulators to make a judgment and assess the balance whether the benefits associated with using cryptocurrencies outweigh the risks, especially in Pakistan.
Baqir also questioned the lack of visibility in cryptocurrencies;
There is no way for regulators or a law enforcement agency to have visibility into who is doing the proceedings and for what purpose. This is why cryptocurrencies have many abuses around the world, including human rights abuses, human trafficking, money laundering and others.
said.
SBP’s primary goal promoting financial inclusion that and so may limit abuse of the financial system. Baqir said that this goal has become more important as it is on the “grey list” of the Pakistan Financial Action Task Force (FATF).
Cryptocurrencies, which are currently not illegal in Pakistan, have been tracked since 2018 for allegedly financing many money laundering and terrorist crimes. With the increasing interest in the sector in the country While there is a boom in cryptocurrency trading and mining FATF industry to the government to regulate is calling.
Cryptocurrencies in the past few months carries more risk than benefit but he said the central bank is working to develop an understanding of possible future currencies