State Bank of Pakistan (SBP) governor Reza Baqir said in this year’s MASIC Annual Investment Forum that cryptocurrency risks far outweigh their benefits and threaten financial and monetary stability for developing countries.
Fast facts
- The SBP recommended a ban on cryptocurrencies last month, with one of the nation’s largest banks quickly heeding the advice by asking customers to avoid using its bank for crypto transactions.
- Pakistan’s central bank mirrors the position of India’s central bank in taking a stand against cryptocurrency trading, citing investor protection and financial stability.
- The Reserve Bank of India (RBI) has been vocal about the risks of crypto trading, with central bank officials scrutinizing digital assets as well as proposing an outright ban on cryptocurrencies.
- India, like Pakistan, supports the idea of having its own digital currency, with the RBI planning to introduce a blockchain-based digital currency in the financial year starting April 1.