Risks of cryptocurrencies overpower benefits, says SBP Governor

KARACHI: On Sunday, the Governor State Bank of Pakistan (SBP) Reza Baqir shared his thoughts on cryptocurrency during the 13th Karachi Literature Festival. He shared his opinion on cryptocurrency, stating that it cannot accelerate banking regulator objectives like financial inclusion or innovation goals.

During the conversation, Baqir pointed out the lack of visibility by law enforcement agencies which resulted in misuse of cryptocurrency in the form of human trafficking, money laundering and violation of human rights.

He added that SBP concluded that currently, the risks of virtual currencies are higher than their benefits and countries like Russia, India, and China had similar views.

SBP Governor said that in times when Pakistan was on FATF’s grey list, the prime objective of SBP is financial inclusion. He also mentioned that in past the financial system had been manipulated for terror financing or money laundering.

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