Fewer people are using banknotes and also paper money. Two-thirds of adults, according to the World Bank, use digital payments. Low- and middle-income countries still utilize cash. Currently, 29 percent of American customers prefer to pay in cash. Digital assets, which are sometimes called “crypto assets,” will rule the future of banking or Cryptoassets and trade.
2009 saw the debut of Bitcoin, the first Bitcoin digital money. Its market worth can become $410 billion in July 2022. Global crypto asset transactions reach $2.9 trillion by November 2021.
Chainalysis, a leading global provider of Blockchain analytics, predicts that by 2021, Pakistani investors will have made $604 million from trading crypto. According to Coinbase’s Global Crypto Adoption Index, it is one of the top three places in the world for cryptocurrency investors.
Central banks and other state-controlled financial institutions control most trade and also currencies. The decentralized ledger technology that crypto assets use makes transactions faster and also easier, making them a viable alternative to traditional systems. Financiers are against unrestricted ways of doing business.
Because of this, there are different opinions on whether or not crypto assets should be considered legal money. The use of these assets is legal in Canada and Australia, but illegal in other countries. Even though this seems like a harsh move, the second biggest economy in the world hasn’t given up on blockchain technology.
The wide variety of ideas and actions in the world raises important questions. The future of crypto assets is important, both internationally and in Pakistan.
The future of digital currencies is bright. Even though the market is unstable, you can bank these currencies. Their basic system is the most important thing to think about. Using blockchain technology, you can make secure and easy international transactions. Governments all over the world have successfully regulated crypto assets, also showing that the technology can be used.
Pakistan, one of the world’s biggest markets for crypto, has made some progress toward legalizing digital currency. Is the country wasting its potential by not embracing technological advances like the rest of the world?
There are already millions of crypto investors, and many more people are ready to use these currencies as trade and investment vehicles. This makes it urgent to take action, and it needs to happen quickly. If the government acts now, this market can help the national exchequer save money on taxes and support financial inclusion projects in the country.
Zeeshan Ahmed is in charge of managing Pakistan.
Originally published at lahoreherald.com