Latest news with #BitcoinVegas2025Conference
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
Pakistan plans bitcoin reserve but govt says crypto still banned at home
In a high-profile presentation at the Bitcoin Vegas 2025 Conference, Pakistan took the global cryptocurrency community by surprise with an announcement to establish a state-backed Strategic Bitcoin Reserve, described as a symbolic step toward long-term engagement with decentralised finance. The declaration came from Bilal Bin Saqib, recently appointed as Special Assistant to the Prime Minister on Crypto and Blockchain with the status of a Minister of State. Saqib, also serving as CEO of the newly created Pakistan Crypto Council, made the announcement after delivering a keynote address attended by influential figures including US Vice President JD Vance, Eric Trump, and Donald Trump Jr. 'We want to thank the US because we are getting inspired from them,' Saqib said, directly tying Pakistan's crypto strategy to US President Donald Trump's pro-crypto stance. Is cryptocurrency legal in Pakistan? Government says no On May 30, Finance Secretary Imdadullah Bosal clarified before the National Assembly's Standing Committee on Finance and Revenue that cryptocurrency is not recognised as legal tender, citing guidance from the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP). 'There will be a legal framework only when the government formally takes a decision,' Bosal said, confirming that existing crypto activities remain unlawful pending legislative changes. Pakistan proposes national Bitcoin wallet and crypto mining plan Saqib had revealed plans for a national bitcoin wallet to hold digital assets 'already in state custody,' framed not as speculative investments but as part of a 'sovereign reserve' to signal Pakistan's commitment to digital finance. In a bid to attract international crypto capital and technology firms, Saqib also announced the allocation of 2,000 megawatts of surplus electricity in the initiative's first phase. This power will support bitcoin mining and AI data centres, opening what Saqib described as a 'new digital frontier' to global investors, sovereign miners, and clean energy partners. 'Pakistan is no longer defined by its past. It is being reborn as a forward-looking hub of digital innovation,' Saqib said in a statement from his office. 'If you're building something real, come build it in Pakistan.' What is the Pakistan Digital Assets Authority and what will it do? Although parallel to Saqib's overseas campaign, the Pakistani government moved to create the Pakistan Digital Assets Authority (PDAA) on May 22, to regulate and formalise crypto and blockchain technologies. According to official statements, PDAA aims to develop a FATF-compliant regulatory framework, oversee virtual asset service providers (VASPs), and integrate blockchain in land records, finance, and governance systems. The Finance Division said the broader strategy was designed to monetise surplus electricity, create high-tech jobs, attract billions in foreign direct investment, and generate substantial revenue for the state. Economists warn against speculative crypto strategy and public risk While the government pitches crypto as an avenue for digital growth and foreign investment, several Pakistani economists are expressing alarm at what they view as a risky pivot toward fictitious assets. While some of these moves appear geared toward influence-building in Washington—especially with figures close to the Trump administration taking an active interest in Pakistan's crypto developments—economists argue that when crypto is positioned as a serious business proposition by the government, it becomes dangerous because the resources being put at risk are public. One concern is the speculative nature of sovereign crypto holdings. Economists noted that suggestions to invest part of Pakistan's foreign exchange reserves in crypto mirror tactics used by speculative brokers, highlighting bitcoin's historic price rises without mentioning its extreme volatility. Bitcoin mining in Pakistan: Why are electricity subsidies raising questions? The government's allocation of 2,000 MW for bitcoin mining has also sparked scrutiny. Economists question why crypto miners should receive electricity at subsidised rates per unit, far below the rate paid by households and industry, calling the move 'puzzling and opaque.' Crypto, unlike traditional assets such as money or gold, remains largely a speculative construct with limited liquidity and broader systemic risks. Experts have likened it to previous financial bubbles built on fictitious assets, from plot file scams to the collateralised debt obligations (CDOs) that precipitated the 2008 global financial crisis.
Time of India
3 days ago
- Business
- Time of India
Big embarrassment! Pakistan's crypto attempt to 'please' Donald Trump in a soup
The State Bank of Pakistan and the Ministry of Finance both clarified that cryptocurrency transactions remain prohibited in Pakistan. (AI image) Pakistan's scramble to please US President Donald Trump by establishing a strategic bitcoin reserve seems to have landed it in a soup! According to a report in the Dawn, senior officials in Islamabad have said that cryptocurrency remains banned in Pakistan. The State Bank of Pakistan and the Ministry of Finance both clarified that cryptocurrency transactions remain prohibited in Pakistan, with all such dealings considered unlawful under existing regulations. At a session of the National Assembly's Standing Committee on Finance and Revenue, Finance Secretary Imdadullah Bosal explained that despite the recent establishment of a Crypto Council by the Prime Minister Shehbaz Sharif through executive order to explore digital asset policies, the prohibition on cryptocurrency remains enforced under SBP and SECP guidelines. According to the Dawn report, Bosal said, "There will be a legal framework only when the government formally takes a decision, but the current legal status is that crypto is not a legal tender in Pakistan." He emphasised that formal legislation would be necessary to alter the current status. Also Read | Donald Trump's trade policy thrown into turmoil! Will countries like India, China be tempted to hold off tariff talks? Members of the committee voiced their bewilderment regarding the government's stance. Mirza Ikhtiar Baig raised concerns about the contradiction where citizens were being prompted to invest in cryptocurrency despite its legal prohibition, cautioning that such investments could result in severe repercussions for the investors. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Beyond Text Generation: An AI Tool That Helps You Write Better Grammarly Install Now Undo Pakistan's Strategic Bitcoin reserve plans The potentially embarrassing clarification by officials comes even as a big declaration about creating a government-supported Strategic Bitcoin Reserve has been made. Pakistan Crypto Council CEO Bilal Bin Saqib in a presentation at the Bitcoin Vegas 2025 Conference announced his country's intentions to establish a government-supported Strategic Bitcoin reserve. The initiative was described as "strategic" and was perceived as an effort to align with US President Donald Trump's pro-cryptocurrency position. "We want to thank the US because we are getting inspired from them," Bilal said after the announcement. Also Read | Target where it hurts: India wants Pakistan back on FATF 'grey list'; to oppose World Bank loans Sohail Jawad, the executive director of State Bank of Pakistan, informed the committee about the central bank's stance on cryptocurrencies. He confirmed that they had declared cryptocurrencies illegal in 2024, and emphasised that this position "was still intact", as reported by Dawn. He further mentioned that the Financial Monitoring Unit continues to forward cryptocurrency-related cases to law enforcement authorities. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
