Digital (Crypto) currencies have come a long way since the invention of Bitcoin in 2008. Backed by innovative technology, blockchain, the concept of cryptocurrency as a digital asset has encapsulated various arenas.
The digital currency is not merely looked at as speculation. Instead, in 2020 they are perceived as investment vehicles, security tokens representing a tangible asset, a mode of payment, and much more.
From mere speculation to an investment instrument – the cryptocurrency industry is thriving. Moreover, its uses are not restricted to financial transactions only. Instead, digital currencies with different applications in various industries have already transpired.
Over the past three years, prominent organisations have started offering services pertaining to the cryptocurrency industry. Investors are now keen to include digital assets in their diversified investment portfolios.
A recent survey, consisting of 400 institutional investors and hedge fund managers, revealed that nearly 72 percent are keen to make investments in digital assets. Now, with the onset of institutional investors, cryptocurrencies are much more likely to be treated as investment tools alongside stocks and gold.
Meanwhile, a number of governments around the world have changed their stance towards cryptocurrencies and digital assets. Germany’s Financial Authority classified Bitcoin and other cryptocurrencies as official custodians.
At the same time, in 2020, the Supreme Court of India lifted the ban pertaining to trading with digital currencies. More than 20 countries have already started exploring the concept of Central Bank Digital Currencies (CBDCs).
As per this research, the costs of financial transactions using cryptocurrencies are significantly lower than transaction costs in the traditional economy. In the near future, we are likely to see other countries drawing regulations pertaining to the use, trade, and storage of digital currencies.
In the upcoming years, cryptocurrency tokens are likely to be integrated with other technologies and innovations. This includes AI, smart contracts, and the Internet of Things (IoT). Tokens will be used to provide supportive infrastructure, build smart tools, and infuse automation by integrating innovative technologies.
Keeping these developments in view and the efforts of Pakistani lone warrior Waqar Zaka, finally, Khyber Pakhtunkhwa (KP) Assembly unanimously passed a resolution on legalizing cryptocurrencies and crypto-mining. The provincial government also called on the federal government to register and officially introduce cryptocurrencies after enforcing necessary legislation.
Social media celebrity and Founder of the Technology Movement Pakistan (TMP) Waqar Zaka is the lone voice championing the cause of cryptocurrency in Pakistan and has urged the government of Pakistan Tehreek-e-Insaf (PTI) to legalize its use in the country.
Now it’s time for Pakistan’s government to start drawing regulations to provide a legally compliant environment for trading and investments in cryptocurrencies. Even in our neighbouring India, cryptocurrency is being used as the fastest, easiest and safest mode of exchange, and countries, companies, and even individuals are earning billions through it.
At a time when the world is earning billions of dollars through digital (crypto) currency by using ‘Bitcoins’ (BTC), a substitute to paper currency, Pakistan is still miles behind in adopting this digital mode.
