Pakistan Crypto Council

The launch of Pakistan Crypto Council (PCC) could herald a new era of innovation and economic potential. After years of flipflopping and indecisiveness over the legality and regulation of cryptocurrencies, Pakistan can now be considered among the more proactive countries in the world, embracing blockchain technology and digital assets in ways that could bring exponential gains, possibly even positioning the country as a leader in the global digital economy.

By fostering an environment of regulation and innovation, the council aims to create a framework that protects investors while simultaneously nurturing the growth of the burgeoning crypto sector. This dual approach — regulating for security, while promoting entrepreneurial spirit - ensures that Pakistan can leverage blockchain technology's benefits without compromising its financial system's integrity.

Recent initiatives in the global crypto market - from the UAE's massive investment in the crypto exchange Binance to US President Donald Trump's moves to set up a strategic crypto reserve — have already lent the digital currency increased credibility. On that note, thoughtful crypto policies could also help reduce foreign exchange pressure on the rupee, though any slapdash work could just as easily misfire.

Also, despite its much-touted security features, crypto remains open to use for criminal activities and has been at the centre of several investment scams. Take, for example, the meme coins introduced by Trump and his wife, Melania. The Trump coin went as high as $74 but is now trading at just $12, wiping over $12 billion off its market cap in a matter of days. Melania's meme coin was even more volatile, rising past a $7 billion market cap in January to just $375 million today.

So, while it is important for Pakistan to move forward with innovation in the field of digital finance, emphasis must remain on consumer protection through robust legal and compliance frameworks if we are to maximise benefits for all Pakistanis, and not just the people with the education, capital and technical know-how to directly invest.