Pakistan Appoints Binance Founder as Crypto Advisor: A Step Towards Becoming a Digital Finance Hub?
Introduction
In a significant move towards embracing cryptocurrency, Pakistan has appointed Changpeng Zhao, the founder of Binance, as a strategic adviser for its newly formed Pakistan Crypto Council (PCC). This decision marks a pivotal shift in the country’s digital finance policy, signifying a potential opening for Pakistan to emerge as a player in the global crypto landscape. The appointment comes as the Pakistani government seeks to regulate and promote innovative financial solutions amidst a rapidly evolving global economic context.
A New Era for Crypto in Pakistan
On April 10, 2025, Zhao, who is commonly known in crypto circles as CZ, signed on to support the PCC, an initiative launched just a month earlier by Prime Minister Shehbaz Sharif’s administration. The PCC aims to create a regulatory framework that safeguards investors while fostering innovation in the crypto sector, a marked change from Islamabad’s previous skepticism towards digital currencies.
Finance Minister Muhammad Aurangzeb hailed Zhao’s appointment as a "landmark moment," emphasizing that it sends a “clear message” to the world that Pakistan is ready to embrace innovation and drive growth in digital finance and blockchain technologies. He noted that with Zhao’s involvement, Pakistan aims to become a regional powerhouse in Web3 and related fields.
The Potential of Pakistan’s Crypto Market
Zhao, whose wealth is estimated at over $60 billion, acknowledged the vast potential of Pakistan’s market, which has a population of approximately 240 million, with more than 60% under the age of 30. "The potential here is limitless," he stated, indicating that the country is ready to cultivate a competitive crypto ecosystem with clear regulatory guidelines.
Bilal bin Saqib, a British-Pakistani tech entrepreneur and chief adviser to Finance Minister Aurangzeb, has noted that around 15 to 20 million Pakistanis currently hold cryptocurrencies, highlighting the existing demand for a structured and legal framework that would facilitate further investment in the sector.
A Shift in Regulatory Paradigms
Historically, Pakistan’s approach to cryptocurrency has been cautious. In 2018, the State Bank of Pakistan had banned financial institutions from engaging in transactions involving digital currencies. However, with the establishment of the PCC and the appointment of Zhao, the narrative appears to be changing.
The influences from international markets, particularly the recent pro-crypto policies under U.S. President Donald Trump—who has significantly shifted his stance on cryptocurrencies—are also being observed in Pakistan’s evolving viewpoint. Trump’s executive order to create regulations for cryptocurrencies has had ripple effects globally, prompting countries like Pakistan to reconsider their policies.
The Debate Over Crypto’s Necessity
While some analysts and industry experts argue that regulating cryptocurrencies is essential, others express skepticism. Critics like Ibrahim Khalil, a banking professional based in Canada, argue that Pakistan may be pursuing an unnecessary agenda, likening the need for cryptocurrency to "a fish needing a bicycle." Khalil points out the lack of compelling use cases for blockchain technology and warns that the push for crypto could be misguided.
In contrast, Ali Farid Khwaja, chairman of KTrade Securities, believes that regulation is paramount for ensuring safe investment practices. He noted that as many Pakistanis engage with offshore platforms that currently evade tax regulations, establishing a local regulated framework could both protect investors and generate revenue for the government.
Challenges Ahead
Despite the optimistic outlook, Pakistan’s digital infrastructure poses significant challenges to the effective implementation and regulation of cryptocurrencies. With rankings of 97th in mobile internet speed and 142nd in broadband access globally, coupled with persistent electricity shortages, the nation faces hurdles in establishing a robust ecosystem for digital currencies.
Experts suggest that while countries like the United Arab Emirates are entering the crypto mining sector with innovative energy solutions, Pakistan must address its fundamental energy challenges to compete effectively in the cryptocurrency arena.
Conclusion
As Pakistan pivots to embrace cryptocurrency, the appointment of Changpeng Zhao as an adviser to the PCC signifies a potentially transformative period for the nation’s digital economy. However, it is crucial for stakeholders to navigate the regulatory landscape wisely and bolster the digital infrastructure. Only time will reveal whether Pakistan can truly position itself as a contender in the global cryptocurrency market.
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