Pakistan plans Bitcoin reserve—but central bank reaffirms crypto ban
What's the story
The State Bank of Pakistan (SBP) and the Finance Ministry have reiterated that all cryptocurrency transactions are illegal under current laws.
The announcement has created confusion among lawmakers and investors alike.
This comes despite recent developments such as the establishment of a government-backed Bitcoin reserve by Pakistan Crypto Council and a deal with World Liberty Financial, a crypto firm partly owned by Donald Trump's sons.
Legal clarification
Finance Secretary clarifies current legal status of crypto
Finance Secretary Imdadullah Bosal clarified during a meeting of the National Assembly's Standing Committee on Finance and Revenue that "there will be a legal framework only when the government formally takes a decision."
He stressed that "the current legal status is that crypto is not a legal tender in Pakistan."
Committee member Mohammad Mobeen questioned why the government was handling crypto matters instead of SBP and highlighted the allocation of power capacity for mining operations despite their illegality.
Policy concerns
Concerns over policy inconsistency and financial stability
The Standing Committee expressed concerns over the government's inconsistent approach toward cryptocurrencies.
It pointed out that while people were being encouraged to invest in crypto assets, these digital currencies remained illegal.
Another committee member Shahram Tarakai warned that Pakistan's foreign exchange could be siphoned off through cryptocurrencies, further destabilizing the already fragile economy.
Concerns were also raised over private sector involvement and illegal hawala channels.