Analysis suggests Pakistan risks repeating America’s mistakes by focusing on cryptocurrency instead of traditional industries.
Key Takeaways:
i) Pakistan ranks among the top countries in cryptocurrency adoption, yet its stock market lags behind regional peers in retail investor participation.
ii) The article raises concerns about the lack of regulation and potential for money laundering through cryptocurrency exchanges operating in Pakistan.
iii) The author suggests Pakistan should focus on reviving traditional industries and explore a central bank-backed digital currency (CBDC) like China.
Islamabad, Pakistan – April 16, 2025 – In a recent analysis published by Mettis Global Link News, titled “Crypto craze or economic suicide? Pakistan must not repeat America’s mistakes,” author Hissan Ur Rehman raises concerns about Pakistan’s increasing engagement with cryptocurrency and its possible negative economic consequences. The article, available at Crypto craze or economic suicide? Pakistan must not repeat America’s mistakes, states, “Pakistan’s eagerness to embrace cryptocurrency could be a path to economic suicide, mirroring potential missteps made by the United States.”
Rehman’s analysis highlights a paradox: despite being a leading nation in cryptocurrency adoption, Pakistan’s stock market struggles with limited retail investor involvement, contrasting sharply with countries like Bangladesh. “[Pakistan’s stock market has very few retail investors compared to other countries like Bangladesh],” Rehman notes. This suggests a misallocation of resources and attention towards a volatile asset class at the expense of more established financial markets.
The article further criticizes the regulatory vacuum surrounding cryptocurrency exchanges operating within Pakistan, particularly mentioning Binance. According to Rehman, this lack of oversight creates opportunities for illicit financial activities, including money laundering. “[The lack of regulation and the potential for money laundering through crypto exchanges like Binance]” are significant risks that Pakistan must address, he argues.
Rehman’s analysis highlights a paradox: despite being a leading nation in cryptocurrency adoption, Pakistan’s stock market struggles with limited retail investor involvement, contrasting sharply with countries like Bangladesh.
Rehman proposes a shift in focus, advocating for the revitalization of Pakistan’s traditional industries. He suggests that diverting resources towards Bitcoin mining and other crypto-related activities is counterproductive. Instead, he points to China’s example, recommending that Pakistan explore the development of a central bank-backed digital currency (CBDC). “[Pakistan should learn from China’s approach by developing a central bank-backed digital currency (CBDC) rather than embracing unregulated cryptocurrencies],” Rehman asserts. This approach, he believes, would provide a more stable and regulated digital financial environment.
Instead, he points to China’s example, recommending that Pakistan explore the development of a central bank-backed digital currency (CBDC).
In conclusion, the article urges Pakistani policymakers to carefully consider the potential economic pitfalls of embracing cryptocurrency without a robust regulatory framework. It advocates for a strategic redirection of efforts towards strengthening traditional industries and exploring safer, government-backed digital currency solutions.
