Embracing crypto

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IT seems a little prod was all it took for Pakistan to finally ‘embrace the future’. The Pakistan Crypto Council has been formed as promised, mere weeks after a delegation representing American interests in cryptocurrency and blockchain technologies called on Finance Minister Muhammad Aurangzeb to hawk its wares. According to a press handout, the PCC will oversee the regulation and integration of blockchain technology and digital assets into the country’s financial landscape. The Finance Division has declared the PCC a “significant step in the country’s efforts to regulate and integrate blockchain technology and digital assets into its financial landscape” while promising that “The council is set to play a pivotal role in formulating policies, fostering innovation, and ensuring a secure and forward-thinking approach to crypto adoption in Pakistan”. It sounds wonderful on paper, but the proof of the pudding is in the eating. After all, the state is still quite devoted to the idea of centralised control and conducting its business on paper, while the financial system remains tightly regulated. It will be interesting to see how disruptive technologies like blockchain and cryptocurrencies can be adopted in such an environment.

The absence of trained researchers and computer scientists from the PCC is another area of concern. Given the number of snake oil salesmen in the cryptocurrency and blockchain domains, one would expect a state-level authority to seek out the services of experts who have actually helped develop these technologies to advise it about how they may be capitalised on. Instead, the PCC, in its present form, seems to have only a single individual who may be considered somewhat knowledgeable about blockchain technology and cryptocurrencies, and while they seem experienced as a business and marketing strategist, their profile does not mention any experience as either a developer or researcher. It is hoped, therefore, that more technical experts will be included in the Council as it expands. Cryptocurrencies and blockchain technology have, no doubt, shown immense promise in improving various aspects of our lives. However, the state should resist hopping onto the bandwagon just because of the buzz. If it is serious about establishing Pakistan as a major player in these technologies, it needs to include scientists and technologists in the PCC so they can advise policy along with bankers, regulators, legal advisers and business strategists.

Published in Dawn, March 16th, 2025

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