Pakistan has no plan to allow cryptocurrency so far and there are no chances of Pakistan to legalize digital currency anytime soon.
Bringing clarity on the use of cryptocurrency in the country, Minister for Information & Broadcasting Fawad Chaudhry said that there are no guarantees behind the currency and we cannot allow the use of any digital currency just on the basis of its trust level in the market.
While citing another reason behind not allowing the use of crypto in the country, Fawad Chaudhry said that the level of fluctuation in the cryptocurrency is unprecedented globally.
He said that we are also bound through FATF conditions to refrain from allowing any such mode of payment in the country.
The information minister, however, added that ultimately the world has to move towards the mechanism of digital payments.
In 2018, the State Bank of Pakistan (SBP) warned the commercial banks and general banks against the use of cryptocurrencies like Bitcoin or Litecoin.
According to a notice issued by the central bank, cryptocurrencies like Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin and Pay Diamond are neither recognized as a Legal Tender nor has SBP authorized or licensed any individual or entity for the issuance, sale, purchase, exchange, or investment in any such virtual currencies or tokens in Pakistan.
The notice warns the general public that cryptocurrencies and tokens provide a high degree of anonymity and potentially can be used for facilitating illegal activities and no legal protection or recourse is available to any individual in the event of a loss incurred due to failure or closure of virtual currency exchanges or security compromises of cryptocurrency exchanges and wallet businesses.
Moreover, the Lahore High Court (LHC) has directed the State Bank of Pakistan (SBP) to consultative sessions across the country in the presence of all parties to discuss matters related to legalising cryptocurrency.