In 1998 Google was a piece of paper written by a Phd Student. Fast forward in 20 years it has a market cap of 300 Billion $ with an annual revenue almost more than Pakistan’s Budget about 8 Billion $. I can give countless examples not just Facebook, Amazon, the well-known even medium sized cybersecurity companies which are doing very well. More about this later first let us look at what is Pakistan’s debt and Can Bitcoin and Blockchain solve Pakistan debt problem?
Pakistan Debt Problem
These days crypto is said to be the digital revolution. Bitcoin stands at a market cap of 166 billion with total crypto market at 300 billion. It is a very new territory where every day startups are being launched. It is not just the currencies but the technology behind it which can solve many diverse problems.
While I completely respect the warnings of state bank of Pakistan. As majority of our population is not knowledgeable about how the crypto work. However, why should this hold back Govt of Pakistan from starting its own ventures.
With China recently hinting towards starting their own cryptocurrency and Mark Zuckerberg warning USA about China’s advancement in the field. I think it is a the right time to benefit from our friendship with China.
We can look into some ideas how Pakistan can make a successful base in crypto space.
USD backed Cryptocurrency:
Tether is world’s first USD backed cryptocurrency it is one of the most traded cryptocurrencies as well. The reason is all crypto exchanges trade BTC against this crypto instead of trading it with USD that will result in fees. Pakistan has 8 billion $ of USD reserves if we gradually role out the currency, I think we can reach a market cap of 4 billion $ easily. This will be 4 billion $ foreign exchange coming from our crypto tokens.
Allowing Pakistanis to start Crypto Exchanges
Countries as small as Finland and Caribbean islands have allowed crypto related exchanges. Which is generating consistent millions of $ foreign reserve for these countries. If we keep crypto banned, we will not only miss on the opportunity of huge currency related benefits, but we will also lose the opportunity of creating world class businesses. With Ripple already set to become the next Mastercard, I think we will keep on paying fees to foreign countries for using their technology.
Allowing 1% Reserves to be in BTC
I admit this is too early to say, however there is a high chance that Bitcoin or some similar decentralized currency will be adopted as a Foreign reserve standard. USD has been foreign reserve currency for 110 years and on average every 95 years the reserve currencies change.
With Governor of Bank of England also looking into such ideas. I strongly believe that a move like this will be of much benefit for Pakistan. This will also help end the long run financial persecution of the developed countries.
In Summary my answer is yes cryptocurrency have the potential to solve Pakistan’s debt problem.