Cryptocurrency in Pakistan: Shabbar Zaidi Gives Useful Tips!

Monday, 15 September 2025 | Web Desk

Cryptocurrency use is expanding globally, especially in the United States.
Pakistan faces unique challenges due to strict foreign exchange controls.
Nearly 9 million Pakistanis hold or trade in digital assets, often using them for cross-border transactions similar to the hawala system: Shabbar Zaidi
Experts believe virtual currencies may continue to grow in Pakistan, particularly for foreign payments.

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Former chairman Federal Board of Revenue (FBR) Shabbar Zaidi noted that cryptocurrency adoption is increasing worldwide, with the U.S. leading the trend. However, Pakistan’s financial system is different since commercial banks cannot trade dollars without State Bank’s approval, creating a barrier to mainstream crypto use.

Millions of Pakistanis Already in Crypto

According to Zaidi, an estimated nine million Pakistanis are engaged in holding or transacting in cryptocurrencies such as Bitcoin. He disclosed that crypto is also being used in under-invoicing of Pakistan-China trade, functioning similarly to the informal hundi-hawala system.

Currency and Trust: A Global Perspective

Shabbar Zaidi explained that all currencies rely on trust, citing the British pound in the past and the U.S. dollar today. In the future, he suggested, a digital currency may emerge as a global medium of exchange.

Limited Demand for Asset-Backed Cryptos

While acknowledging that asset-backed cryptocurrencies can be issued, Zaidi argued their demand will remain low. He claimed that people primarily use unregulated cryptocurrencies to launder black money into legal assets.

Lessons from India and the U.S.

The former FBR chief highlighted contrasting policies in India and the U.S. India has formally rejected cryptocurrencies, whereas their popularity in the U.S. continues to rise. He further claimed that despite opposition from the Federal Reserve, the Trump administration supported crypto and that the Trump family profited around \$2.4 billion from it.

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Digitalization vs. Cryptocurrency

Clarifying the difference between digital finance and crypto, Zaidi stressed that Pakistan’s progress in financial digitalization does not equate to cryptocurrency adoption. He stated:
“Digitalization means documentation and traceability, whereas cryptocurrency is based on anonymity and lack of control.”

Future Outlook for Pakistan

Experts believe Pakistan’s strict foreign exchange controls will push more people toward virtual currencies in the coming years, especially for overseas payments.