Tag: DIGITAL CURRENCY

  • SBP to introduce digital currency in Pakistan with technical support from IMF, World Bank

    SBP to introduce digital currency in Pakistan with technical support from IMF, World Bank

    In a media briefing held today in Karachi, Deputy Governor of the State Bank of Pakistan (SBP), Salimullah, announced that the central bank is currently evaluating the introduction of a digital currency.

    This project is being pursued with technical support from the World Bank, in collaboration with the International Monetary Fund (IMF).

    Salimullah highlighted that efforts are underway to link Pakistan with 60 countries, including those in the Middle East, to enhance remittance flows.

    Looking ahead, the governor revealed that the Raast payment system will be integrated with the Arab Monetary Fund’s cross-border payment platform, Buna, by next year.

    Buna facilitates secure, cost-effective, and transparent transactions for financial institutions and central banks across the Arab region and beyond, enabling payments in both Arab and major international currencies.

    The integration with Buna is expected to provide 60 million Pakistanis living abroad with the capability to transfer funds instantly and at minimal costs, significantly boosting economic and financial connectivity.

  • Pakistan to launch digital rupee to reduce printing and distribution costs

    Pakistan to launch digital rupee to reduce printing and distribution costs

    The government has opted to introduce a digital currency as a strategic move aimed at reducing expenses associated with currency printing and distribution.

    According to The News, this digital currency initiative is expected to contribute to the appreciation of the rupee’s value, bolster the overall economy, and facilitate extensive financial transactions.

    Much like the Chinese digital currency, where one unit is equivalent to one Chinese Yuan, the value of this digital currency will be pegged to the Pakistani rupee. The State Bank of Pakistan (SBP) will be the driving force behind this endeavour, offering government-backed guarantees similar to traditional currency notes. The SBP has already begun its efforts, enlisting the expertise of professionals for its development.

    To oversee this transformation, a specialised department known as the Central Bank Digital Currency has been established. This department is diligently assessing the cost benefits and feasibility of the digital currency to ensure seamless transactions upon its launch.

    The government’s objective is to gradually replace physical currency notes with digital currency while maintaining an 80:20 ratio, allowing currency notes to coexist as a backup in unforeseen circumstances.

    The adoption of digital currency will also yield significant savings by eliminating the expenses associated with printing, distributing, and disposing of physical notes. Additionally, every digital transaction will be meticulously documented, enhancing the effectiveness of monetary policy enforcement.

    Furthermore, digital currency holds substantial potential for advancing cross-border trade and investment and extending access to financial services for the unbanked population. The World Bank acknowledges its potential to enhance the financial industry’s efficiency, resilience, and reliability, with blockchain technology serving as one of the pivotal distributed ledger technologies supporting these advancements.

  • Pakistan suspends cryptocurrency services to combat illegal transactions

    Pakistan suspends cryptocurrency services to combat illegal transactions

    The Pakistani government announced on Wednesday that it will suspend cryptocurrency services provided over the internet in the country in order to prevent illicit digital currency transactions.

    According to Geo, the State Bank of Pakistan (SBP) and the Ministry of Information Technology have already begun the process of prohibiting cryptocurrencies, complying with the directives.

    During a briefing to the Senate Standing Committee on Finance, Dr Aisha Ghaus Pasha, the Minister of State for Finance and Revenue, emphasised that cryptocurrency will never be legalised in Pakistan.

    She revealed that the Financial Action Task Force (FATF) has imposed restrictions on the matter, stating that the condition set by FATF is that cryptocurrency will not be legalised.

    Supporting Pasha’s stance, Sohail Jawad, the Director of SBP, stated that crypto transactions carry high risks and will therefore never be granted permission in Pakistan. He explained that cryptocurrency is a virtual currency with over 16,000 types currently in existence. Additionally, he mentioned that the market, which was valued at $2.8 trillion, has now shrunk to $1.2 trillion.

    Senator Saleem Mandviwalla from the Pakistan Peoples’ Party (PPP) expressed concerns over the billions of dollars invested in the market. In response, the SBP official reassured him by mentioning that the Federal Investigation Agency (FIA) and the Financial Monitoring Unit (FMU), a financial intelligence unit aiding Pakistan in combating terrorism financing and money laundering, are actively addressing these concerns.

    Pakistan has witnessed a surge in cryptocurrency trading and mining, as evidenced by the growing interest in related social media videos and online exchange transactions.

    Although the government had previously banned trading and mining of virtual currencies in April 2018, cryptocurrency mining continues to thrive in the country, despite the closure of several mining farms.

    Most exchanges operate discreetly through undisclosed partners, evading regulatory oversight. Nevertheless, the government persists in its efforts to curtail crypto trading activities.

  • Bitcoin surrenders weekend gains, slides 5 per cent

    Bitcoin surrenders weekend gains, slides 5 per cent

    Cryptocurrencies continued their steady decline on May 16, surrendering the gains made over the weekend as regulators loomed.

    European authorities have reinforced their warnings about the vulnerabilities of cryptocurrencies. Bitcoin slumped 5 per cent to roughly $29,700 in Asian trade on Monday, falling alongside markets amid concerns about burgeoning inflation and borrowing costs.

    As the catastrophic collapse of TerraUSD, a so-called stablecoin, has roiled crypto markets already plunging amid widespread selling of risky assets, the world’s largest cryptocurrency has lost almost a fifth of its value so far this month.

    Read more: Pakistani rupee crashes to historic low of Rs194 against US dollar

    Stablecoins are vulnerable to investor runs, according to the US Federal Reserve, because they are underpinned by commodities that could depreciate or become worthless in adverse economic conditions.

  • ‘Stablecoin’ crashes, bitcoin set for a record losing run

    ‘Stablecoin’ crashes, bitcoin set for a record losing run

    Following the collapse of TerraUSD, a so-called stablecoin, resonated across markets, cryptocurrencies suffered significant losses on Friday, with bitcoin trapped below $30,000 and on track for a record losing streak.

    Concerns about high inflation and rising interest rates have prompted widespread dumping of hazardous investments, including crypto assets.

    However, sentiment is particularly shaky, as tokens that were intended to be tethered to the dollar have failed.

    Bitcoin, the most valuable cryptocurrency by market capitalization, attempted a recovery early in the Asian session, rising 2 per cent to $29,500, a recovery from a 16-month low of roughly $25,400 on Thursday.

    It is still trading well below week-ago levels of around $40,000 and is on track for a record sixth consecutive weekly loss unless weekend activity improves.

    “I don’t believe the worst is gone,” Scottie Siu, investment director at Axion Global Asset Management, a Hong Kong-based firm that manages a crypto index fund, said. “I believe there will be further decline in the days ahead”.

    “I believe what we need to see is a significant drop in open interest, so that speculators are forced out, and then the market will stabilise”.

    Read more: Pakistan’s cement exports fell by 82.15 per cent in April 2022

    This week, TerraUSD (USDT) lost its 1:1 peg to the dollar, as its method for maintaining stability, which relied on another virtual token, failed under selling pressure.

  • Crypto companies at risk of closure in the United Kingdom

    A number of cryptocurrency businesses in the United Kingdom (UK) may be forced to shut down if they fail to register with the financial watchdog before a major deadline next week.

    Firms providing crypto services in the UK must register with the Financial Conduct Authority (FCA) by 31 March, 2022. The FCA is in charge of supervising how digital asset firms tackle money laundering.

    In 2021, the authority stretched the deadline for businesses on a temporary register to continue trading while seeking full license. Once the deadline passes, the temporary register will be closed.

    Many crypto businesses have withdrew their applications, according to the FCA, since they did not match the required anti-money laundering criteria.

    With only days until the deadline, the status of companies on the temporary register including Revolut, a $33 billion fintech business, and Copper, a crypto start-up is in trouble which counts on UK Finance Minister, Philip Hammond as its advisor.  

    Read More: Pakistan decides to make cryptocurrency illegal

    Some businesses are now withdrawing their applications, including B2C2, a London-based crypto trading firm, just removed itself from the FCA’s provisional registry.

    B2C2’s spot trading activity has been relocated to the company’s U.S. Entity from this week. The firm’s business is now unaffected as it is handled by an FCA-authorized subsidiary.

  • PayPal allows crypto buying and selling

    PayPal has announced that its users in the United Kingdom (UK) will now be able to purchase, sell, and hold bitcoin and other cryptocurrencies starting this week, Reuters has reported.

    Customers will be able to buy bitcoin, ether, litecoin and bitcoin cash through their PayPal wallets online or on the mobile app.

    “The pandemic has accelerated digital change and innovation across all aspects of our lives— including the digitisation of money and greater consumer adoption of digital financial services,” said Jose Fernandez da Ponte, Vice President and General Manager, Blockchain, Crypto and Digital Currencies at PayPal.

    “Our global reach, digital payments expertise, and knowledge of consumer and businesses, combined with rigorous security and compliance controls provides us the unique opportunity, and the responsibility, to help people in the UK to explore cryptocurrency. We are committed to continue working closely with regulators in the UK, and around the world, to offer our support—and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce.”

    Bitcoin is the world’s biggest digital currency, which hit a record high of nearly $65,000 in April before tumbling below $30,000 in July as Chinese regulators extended a crackdown on the market. It has since recovered to a price of $48,400.

  • Waqar Zaka claims he can settle Pakistan’s debt if given chance to run the country

    Waqar Zaka has claimed that he can pay off Pakistan’s debt using crypto currency if given the chance to “run the country”.

    “I can pay off Pakistan’s debt using crypto[currency] but the condition is Imran Khan, should step down and let me run the country,” wrote the reality show host on social media.

    Zaka also asked supporters of the ruling party what they have to pay off the debt.

    “If not, then Pakistanis should demand what solution respectable, olive plantation, tourism, anti-corruption lovers IK has?” asked Zaka, challenging “all politicians” to present a better idea.

    Meanwhile, Twitter had a field day over Zaka’s Tweet.

    https://twitter.com/bouquetvibes/status/1389650242224590848

    Waqar Zaka got famous from the reality tv show, Living on the edge. Earlier this year he submitted his documents to the Election Commission of Pakistan (ECP) to launch his own political party. Zaka has been at the forefront of many trending causes including demanding cancellation of exams and ban on PUBG and TikTok.

  • SBP could soon be launching digital currency in Pakistan

    SBP could soon be launching digital currency in Pakistan

    State Bank of Pakistan (SBP) Governor Dr Reza Baqir has said the central bank is carefully studying the options to launch digital currency in Pakistan.

    Speaking to a private media outlet, Baqir highlighted the role of the central bank in the wake of COVID-19 in Pakistan. He also talked about his vision to bring digitisation to the country’s financial sector.

    “The launch of digital coin in Pakistan will have a twofold benefit to us. Not only does it boosts our efforts for financial inclusion, but the central bank-issued digital currency will allow progress in our fight towards anti-money and countering terrorism financing,” said Baqir.

    On the entry of global fintech companies like stripe in the Pakistani market, Baqir said that big international payment providers are “very welcome” in Pakistan.

    “Pakistan is the home to the fifth-largest concentration of people. It is a market where people are generally tech-savvy, and it is a market that is waiting to burst as far as digitisation is a concern,” said Baqir.

    “We are very open, and we embrace any global mobile payment operator that wants to come to Pakistan.”