Pakistan has banned cryptocurrency
Pakistan has banned cryptocurrency, following the recommendations of the Financial Action Task Force (FATF). The FATF is an intergovernmental body that sets standards for combating money laundering and terrorist financing.
The ban on crypto in Pakistan is a significant development. The country had previously been a relatively crypto-friendly jurisdiction, ranking third in the Global Crypto Adoption Index in late 2021. However, the ban will likely have a negative impact on the country’s crypto industry.
The government of Pakistan has cited a number of reasons for banning cryptocurrency. These include the risks of money laundering and terrorist financing, the volatility of the crypto market, and the lack of regulation in the crypto industry.
The ban on crypto has been met with mixed reactions. Some investors have expressed disappointment, while others have welcomed the move. The government of Pakistan has assured investors that measures are in place to protect their interests.
Here are some of the risks of cryptocurrency that the government of Pakistan has cited:
Money laundering: Cryptocurrency can be used to launder money, as it is difficult to track transactions.
Terrorist financing:
Crypto can be used to finance terrorist activities, as it is difficult to trace the source of funds.
Volatility:
The cryptocurrency market is highly volatile, meaning that the value of cryptocurrencies can fluctuate wildly. This can make it difficult for investors to make informed decisions.
Lack of regulation:
The cryptocurrency industry is largely unregulated, which means that there is no guarantee that investors will be protected if something goes wrong.
Here are some of the benefits of cryptocurrency that some investors have cited:
Decentralization:
Cryptocurrency is not subject to government control, which means that it can be used to bypass financial sanctions.
Transparency:
All cryptocurrency transactions are recorded on a public ledger, which makes them transparent and auditable.
Security:
Cryptocurrency transactions are secured by cryptography, which makes them very difficult to hack.
The government of Pakistan has said that it is committed to protecting investors’ interests. The government has said that it will work with the cryptocurrency industry to develop a regulatory framework that will protect investors and mitigate the risks of money laundering and terrorist financing.
Pakistan is investing in artificial intelligence
While banning cryptocurrency, Pakistan is also investing in artificial intelligence (AI). The government has set ambitious goals to train a significant number of IT graduates in AI and Allied Technologies by 2027. The aim is to bridge the existing skills gap and ensure a proficient workforce capable of harnessing the benefits of AI across various sectors.
In addition to investing in education and training, the Ministry of Information Technology and Telecommunication has outlined plans to fund AI-led research and development initiatives in both academic and private sectors. By encouraging the filing of AI-related patents,
Pakistan aims to promote indigenous innovation and establish itself as a hub for AI research and development. These initiatives demonstrate the government’s commitment to leveraging emerging technologies and positioning Pakistan as a technologically advanced nation.
Here are some of the benefits of artificial intelligence that the government of Pakistan is hoping to achieve:
Economic growth:
AI has the potential to boost economic growth by automating tasks and improving efficiency.
Innovation:
AI can be used to develop new products and services, which can lead to new jobs and economic growth.
Competitiveness:
AI can help Pakistan to compete with other countries in the global economy.
Quality of life:
AI can be used to improve the quality of life by automating tasks, providing personalized services, and making healthcare more accessible.
The government of Pakistan is taking a balanced approach to cryptocurrency and AI. The government is aware of the risks associated with cryptocurrency, but it is also aware of the potential benefits of AI. By taking a balanced approach, Pakistan is positioning itself to be a leader in the digital economy.
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