Digital currency in Pakistan?

This refers to the letter, ‘Digital currency’ (Dec 9), by Syed Farhan Ghani. The proposal of introducing ‘digital currency’ or ‘e-coin’ appears to be quite relevant to deal with corruption, but in countries like Pakistan, where more than 50 percent of the people lack basic education and the majority belong to the low income group without any bank accounts, the success of this type of currency is questionable. In the recent times, there have been various proposals to fight against corruption. One such suggestion has been to finish the higher denomination currency notes, especially those of Rs5000. It is said that the higher denomination currency notes makes it easier to ‘hoard the black money’ – use ‘hundi’ for cash transactions – facilitating those involved in money laundering and in various other illegal and corrupt practices. More than 50 percent of the population living in countries like Pakistan earns a meagre income and doesn’t find any use of currency notes of higher denomination.

On the other hand finishing these notes alone cannot erode corruption; although it would make it a bit difficult and cumbersome for those involved in it on a routine basis. Anyway, the new proposal of introducing ‘digital currency’ can also be introduced initially as a ‘test proposal’. If found practically successful, it could be continued in the long run; so that everybody has to carry out all kinds of documented transactions, thus facilitating accountability at all levels.

Sqn Ldr (r) Tarique Mahmood Malak

Rawalpindi