Economic crisis might push Pakistanis towards cryptocurrencies

The economic crisis in Pakistan is the biggest challenge faced by the freshly elected Imran Khan’s Pakistan Tehreek-e-Insaf (PTI), marred by dwindling foreign reserves and  depreciation in the value of Pakistani rupee against dollar.

As per Forbes, the looming crisis will push people towards cryptocurrecies, earlier banned by the State Bank of Pakistan (SBP). “Now a coming economic crisis will mean people in Pakistan are pushed away from fiat currency and the local rupee, and towards alternative options — including bitcoin and cryptocurrencies,” reported Forbes.

In April, the SBP banned the use of the virtual currencies. “General oublic is advised that virtual currencies, coins, tokens such as Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin and Pay Diamond are neither recognized as a Legal Tender nor has SBP authorized or licensed any individual or entity for the issuance, sale, purchase, exchange or investment in any such virtual currencies, coins, tokens in Pakistan,” it stated.

Pakistan is eyeing another trip to the International Monetary Fund (IMF). If Imran Khan does turn to the international money lender, IMF will likely require spending cuts to reduce the fiscal deficit, which could imperil his populist promises to improve the lives of the poor by building world-class schools and hospitals.