State Bank of Pakistan (SBP) Governor Reza Baqir spoke about cryptocurrencies during a panel discussion at the 13th Karachi Literature Festival. The governor of Pakistan’s central bank asserted that crypto lacks good use cases, with Baqir stating that when we now look at the value proposition offered by cryptocurrencies, the use case presented is only exchanges.
Regulators or law enforcement agencies have no way of knowing who is transacting and for what purpose, so there are many abuses of cryptocurrencies around the world, including human rights violations, human trafficking, money laundering, and many other things.
Baqir also mentioned that Pakistan’s financial system has been used for money laundering and terrorist financing. Still, there is hope that regulators will allow bitcoin to be used, traded and sent abroad.
Baqir explained: “Every new thing has some benefits and some risks, and it is the job of policymakers to assess the risks, especially whether the benefits of using cryptocurrencies in Pakistan outweigh the risks.