The digitization of information is a result of the internet-enabled society. Similarly, bitcoin’s ground-breaking technology (the blockchain) allows society to digitise value. Most cryptocurrencies were vulnerable to a vulnerability known as double spending before bitcoin.
This refers to the possibility of a coin being spent twice. Because digital information may be quickly replicated by smart persons who understand the blockchain network and the computational power required to change it, it is a potential issue specific to “digital currency.”
Pakistan may profit from the Bitcoin Dollar in Pakistan ecosystem in a variety of ways. Bitcoin, we believe, is poised to outperform traditional investments in the future. The State Bank of Pakistan convert up to 5% of its sovereign gold holdings (about $180 million) into bitcoin before the price rises above the country’s affordability level. The upside scenario might have a significant beneficial influence on the country’s asset reserve position.
With the use of the internet and a smartphone, the typical Pakistani investor may have access to the world’s best-performing asset over the last decade. These unrivalled returns will benefit investing households, improve the local economy through increased demand, and produce capital gains tax revenue.
The State Bank of Pakistan and the securities regulator provide all Pakistani investors access to this asset class. The Bitcoin Dollar in Pakistan ecosystem’s interaction with established financial institutions must be low-cost and seamless. A properly regulated national cryptocurrency exchange with incentives should be established to encourage domestic participation.
The State Bank of Pakistan has made Raast, a new quick payment system, a top priority. Every indication leads to a thriving local remittance ecosystem. International money remittance, on the other hand, remains a cumbersome procedure with high costs and long settlement times. The monetary network of Bitcoin Dollar in Pakistan offers a full answer to this issue.
Bitcoin’s Layer 2 protocol (Lighting Network) allows for the real-time delivery of micropayments with minimum costs. The government committee in charge of bitcoin is inviting fintech companies like Strike to learn more about the benefits of this solution. Pakistan should start working on integrating Raast into the Bitcoin Dollar in Pakistan ecosystem.
There are several ways to join the Bitcoin revolution in Pakistan. The benefits outweigh the costs by a large margin. It is critical to develop a national cryptocurrency policy and to join the bitcoin ecosystem as an early adopter. The time for action has arrived.