Hey everyone. I hope that you all are doing fine and trading and earning. The knowledge that I find here about crypto and online trading is unprecedented. This is why I have decided to post here regularly to share my views and learn from you guys. I will be sheding some light on the potential of crypto in saving Pakistan, my country, from an economic catastrophe.
Crypto is booming and we all know that. It is the new buzzword here in Pakistan. Pakistan is one such country that has been cautious about tke use of crypto and such trading sides. However, with the current economic situation in the country, many people including influencers and politicians are wondering if crypto could be the solution to Pakistan's financial woes. I have similar views
Pakistan's economy has been struggling for years, with issues such as inflation, unemployment, and a large trade deficit. It has gotten worse after the ouster of Imran khan from the government. The government has implemented various policies to try and address these issues, but they have had little success.I am a common man and I have witnessed the severe impacts of this double digit inflation. In this context, many people are turning to cryptocurrencies as a possible solution.
I think One of the main advantages of cryptocurrencies is that they are decentralized, meaning that they are not controlled by any central authority, such as a government or a bank. This makes them resistant to inflation and other economic problems that traditional currencies are susceptible to such as our Rupee pkr. It has depreciated so much and is worth around 290 against one American dollar. As a result, some people believe that using cryptocurrencies could help Pakistan overcome its economic challenges. It was highlighted by Waqar Zaka who is a celebrity and crypto enthusiast.
Farhad, a friend of mine, enlightened me that crpto is fast and secure. Transactions can be completed quickly and without the need for intermediaries, such as banks. This makes them ideal for international transactions, which could help Pakistan increase its exports and reduce its trade deficit. It is now in billions of dollars. Our imports are causing damage to our economy because of the lack of forex reserves. We should be focusing on the aspects of trading in crypto
Not to mention, cryptocurrencies are easily accessible, especially to those who do not have access to traditional banking services. In Pakistan, where a large proportion of the population is unbanked, cryptocurrencies could provide a way for people to participate in the economy and access financial services. This is sad but true that a wide majority is not associated with the banking system. I myself got a bank account registered last year.
However, despite these potential benefits, there are also risks associated with cryptocurrencies as well. One of the main concerns is the lack of regulation. Some bills and laws need to passed to prevent potential scams of this nature. Cryptocurrencies operate outside of the traditional banking system, which means that they are not subject to the same regulations as traditional currencies. This makes them vulnerable to fraud, hacking, and other illegal activities. In addition, the volatile nature of cryptocurrencies means that their value can fluctuate rapidly, which could result in significant financial losses for those who invest in them. I came across a mutual friend on social media who was scammed by some local crypto traders.
We cannot deny that there are risks, but there are steps that Pakistani government could take to mitigate them. For example, the government could introduce regulations to govern the use of cryptocurrencies and prevent illegal activities. It could also work with international organizations to develop best practices for using cryptocurrencies. By the end of this year, we will have a new government. Let's hope that it works in the similar trajectory.
There is a growing trend of crypto teachers and experts who are engaged in teaching young aspiring people about the trends and potential of crypto market. I think and I am pretty sure that the country is heading towards the right direction. The pace maybe slow, but the direction seems right at this point. If you visit Binance or any other such app, it is flooded with Pakistani merchants.
Ps: the picture is mine