THE IMPACT OF CRYPTOCURRENCY ON THE INTERNATIONAL ECONOMY: CHALLENGES IN PAKISTAN

Authors

  • Mehak Mubarak Ali

Abstract

The fast development of cryptocurrencies has caused extensive conversations about their possible influence on the global economy, offering prospects as well as difficulties for nations all over the world. This abstract focuses on Pakistan's challenges in light of the changing bitcoin market. Because they allow for decentralized, international, and speedy transactions, cryptocurrencies led by Bitcoin have upended established banking institutions. Although several nations welcome these digital resources, Pakistan has unique difficulties adjusting to the decentralized nature of cryptocurrencies. A major obstacle is the lack of a regulatory framework, which leaves the economy vulnerable to dangers including tax evasion, money laundering, and fraud.

The instability of cryptocurrency pricing complicates matters further for Pakistan's stable economy. As a developing country, the nation has the difficulty of incorporating virtual currencies into its financial system while reducing the dangers brought on by price volatility. The problem is made worse by the general public's ignorance and lack of comprehension. Furthermore, Pakistan's foreign commercial and banking interactions are complicated by regulatory discrepancies around the globe. The lack of a unified strategy for regulating cryptocurrencies might make it more difficult for people to deal across borders and could isolate Pakistan from new economic trends. Although the growing number of cryptocurrencies presents obstacles for Pakistan, they hold the potential to bring about financial innovation. To fully capitalize on the potential advantages of this developing digital economy while reducing related risks, Pakistan must establish a strong regulatory framework, raise public awareness, and handle the economic effects of cryptocurrency volatility.

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Published

2023-12-30

How to Cite

Mehak Mubarak Ali. (2023). THE IMPACT OF CRYPTOCURRENCY ON THE INTERNATIONAL ECONOMY: CHALLENGES IN PAKISTAN. International Journal of Policy Studies, 3(2). Retrieved from http://ijpstudies.com/index.php/ijps/article/view/51