In its new research report, the Federation of Pakistan Chamber of Commerce and Industry or FPCCI cited that the interest in cryptocurrencies has been on the rise in Pakistan. This top trade organization pointed out that the South Asian country recorded approximately US$20 billion of virtual currency value from 2020 to 2021.
These figures demonstrate an unusual surge of 711 percent and an amount above present federal reserves. Additionally, the FPCCI relayed that in Pakistan, crypto-assets have thrived during the coronavirus or COVID-19 pandemic.
As this year draws to a close, we are pleased to read and share this cryptocurrency-related news with our readers. We think this update merely shows that virtual currencies continue to be well-received by investors worldwide.
According to the news posted online by Saudi Arabia-based, English-language daily newspaper Arab News, virtual currency and property have remained the best or top-performing asset classes in Pakistan this 2021.
Leading Karachi-based brokerage house Topline Securities confirmed this report. In Pakistan, cryptocurrencies are among the major asset classes local investors use. Moreover, in the Global Crypto Adoption Index from 2020 to 2021, the South Asian territory ranked third after India and Vietnam.
Based on the new report released by the FPCCI, Binance is the largest cryptocurrency exchange investors in Pakistan use.
Besides this virtual currency exchange headquartered in the Cayman Islands, Binomo, Localbitcoins.com, and other virtual currency exchanges are the other renowned crypto-asset trading platforms in the South Asian country.
Roughly 67 percent of cryptocurrency investors in Pakistan utilize centralized services. Meanwhile, merely 33 percent use decentralized financing platforms for cryptocurrency-related transactions.
The peer-to-peer model for cryptocurrency investing works in a manner that buyers transfer funds directly to sellers. Meanwhile, service providers function as intermediaries, providing escrow services to hedge counterparty credit risks.
The FPCCI relayed that traditional international payment instruments like credit and debit cards cannot be used for virtual currency purchases. This fact is due to the Pakistani central bank, the State Bank of Pakistan’s prohibition on financial institutions under its umbrella.
Thus, most investors employ bank transfers. They also utilize other methods like EasyPaisa or JazzCash for the purpose.
We think this report about investors in Pakistan owning US$20 billion in cryptocurrencies is welcoming news. We find it exhibiting the fact that many people worldwide increasingly trust virtual currencies as effective storage of wealth.
We think more Pakistani investors are beginning to realize that cryptocurrencies like Bitcoin are the future of the financial world, despite the State Bank of Pakistan declaring three years ago that these digital assets are not legal tender the national government issued or guaranteed.
We think this coming 2022, more investors in Pakistan will pour their investment funds into cryptocurrencies which will become more well-received in the coming years.
After all, we believe more investors in Pakistan and worldwide will choose to park their wealth in these crypto-assets as they increasingly learn that cryptocurrencies hold tremendous promise and value that conventional investment asset classes do not offer.