Bitcoin IV

Inviting Bitcoin to Pakistan amounts to inviting cutting-edge, world-changing technology to Pakistan. Inviting Bitcoin to Pakistan amounts to inviting innovation to Pakistan. Embracing this groundbreaking technology will unlock a world of opportunities, driving economic growth, fostering financial inclusion, and positioning Pakistan as a forward-thinking player in the global digital economy. By leveraging Bitcoin, Pakistan can attract tech-savvy investments, create jobs, and modernise its financial infrastructure for a more inclusive future.

Bitcoin is an extremely scarce asset. Bitcoin is the only commodity in human history -- along with certain other cryptocurrencies -- whose supply is capped. Bitcoin is digital gold. Bitcoin is borderless. Bitcoin is decentralised. Bitcoin is global. Bitcoin is peer-to-peer. Bitcoin is open-source. Bitcoin is pseudonymous. Bitcoin is immutable. Bitcoin is transparent. Bitcoin is a medium of exchange. Bitcoin is a unit of account. Bitcoin is resistant to censorship. Bitcoin is resistant to inflation. Bitcoin is programmable money. Bitcoin is community-driven. Bitcoin is an innovation catalyst. Bitcoin is a challenge to traditional finance. Bitcoin is about social change.

Sovereign entities that hold Bitcoin include the United States, China, the United Kingdom, Ukraine, Bhutan, El Salvador, Venezuela, Finland, Georgia, Bulgaria, and Germany.

The Bitcoin Act of 2024 (S 4912), a bill that proposes holding Bitcoins as a ‘Strategic National Reserve’, is pending in the United States Congress. RESBit, a similar bill to allocate up to five per cent of Brazil’s international reserves to Bitcoin, is pending at the Brazilian Congress.

El Salvador has adopted Bitcoin as legal tender. Thailand, Philippines, Paraguay, Panama, South Korea, India, Nigeria, Ghana, Kenya, South Africa, Australia, Canada, Germany, United Kingdom, Singapore, Hong Kong, Japan, Morocco, Tunisia, UAE, Qatar, France and Switzerland are all taking steps towards integrating cryptocurrencies into their financial systems.

The State of Wisconsin Investment Board (SWIB) has invested $156 million in Bitcoin. The Florida State Board of Administration (SBA) is also exploring a similar investment. Additionally, the California State Teachers' Retirement System (CalSTRS), the Colorado Public Employees' Retirement Association (PERA), and several cities and counties in Texas, Wyoming, and New York are considering making similar moves into cryptocurrency investments.

MicroStrategy, Marathon Digital Holdings, Tesla, Coinbase Global, Block, Inc., Galaxy Digital, the Tezos Foundation, iShares Bitcoin Trust, Grayscale, Fidelity, and several other major corporations collectively own Bitcoin holdings valued at nearly a trillion dollars.

For Pakistan, Bitcoin offers the potential to serve as a hedge against inflation, providing a store of value not tied to traditional fiat currencies. For Pakistan, Bitcoin can bring much-needed diversification, reducing reliance on traditional assets. By embracing this digital currency, Pakistan can foster technological advancement, opening doors to blockchain innovation and the digital economy. For Pakistan, Bitcoin can drive financial inclusion by providing unbanked populations access to secure and efficient financial systems. It promises to stimulate economic growth by creating new industries, job opportunities, and investments. Finally, Bitcoin could play a role in addressing Pakistan's debt challenges by serving as a high-value reserve asset, potentially improving the country’s fiscal stability and global financial standing.

To be certain, Bitcoin is now mainstream, having evolved from a niche experiment into a globally recognised asset class and technology. Pakistan cannot afford to be left behind in embracing this transformative financial innovation, as doing so risks missing out on significant economic and technological opportunities.

The writer is a columnist based in Islamabad. He tweets/posts @saleemfarrukh and can be reached at: farrukh15@hotmail.com