Pakistan on the brink of an economic crisis; Cryptocurrency trade volumes start to spike
Pakistan has lately been the hot topic of discussion around the world owing to it’s national elections. Former cricketer, Imran Khan, is now looking to take control of Pakistan’s governance as the Prime minister. This has caused a financial uncertainty in the whole of Pakistan, leading to increased volumes of cryptocurrency trade!
Recently, Forbes released a report about the increasing trade of Bitcoins in Pakistan’s most popular crypto exchange, LocalBitcoins. What seems to be very apparent from the report is that in cities such as Lahore, Islamabad, Karachi and Rawalpindi, the trade of crypto, especially Bitcoins, has increased significantly.
Cross border transactions more difficult than ever
The Central Bank of Pakistan had released a statement in April saying Pakistan would not encourage the trade of cryptocurrencies within the country. However, this has hardly deterred the Pakistan crypto community, despite the increase in Bitcoin price lately. In addition to this, the central bank is making it extremely difficult for the citizens of Pakistan to access US dollars, according to report from Bloomberg.
This has caused a major hurdle in the cross border monetary transactions, which is why most of them are turning towards cryptocurrency for easier money transfer.
Economic crisis pushing crypto trade volumes?
Imran Khan, a representative of Tehreek-e-Insaf (PTI), who is very certain to become the next Prime minister of Pakistan, has mentioned several times about the betterment of Pakistan’s economy as well as fighting corruption. However, he hasn’t precisely mentioned anything about the economic policies that he would like to bring to effect.
“Whichever party wins Pakistan’s upcoming general election will take over an economy on the brink of a balance of payments crisis. Growth is likely to slow sharply regardless of who wins Wednesday’s election,” says, Gareth Leather, an economist from Capital Economy.
So all these factors combined have had a positive effect on the virtual currency trade in Pakistan. It is just a matter of time before we find out how the next Prime minister of Pakistan would handle crypto trade in the country.
Image via Shutterstock
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