Former FBR chairman Shabbar Zaidi said Pakistan’s tightly controlled financial system prevents effective regulation of cryptocurrencies, though they are increasingly used as an alternative to hawala.

Speaking at a PIIA session, he noted that around nine million Pakistanis hold or trade digital assets, mainly Bitcoin, and that virtual currencies are already used in trade settlements with China. He argued that “a currency born unregulated cannot be regulated,” stressing crypto’s reliance on anonymity, unlike Pakistan’s digitisation drive focused on traceability.

Zaidi cited India’s rejection of crypto and its growth in the US, linking it to political support under Donald Trump, who he claimed earned $2.4bn from virtual currencies.

Experts added that despite regulation challenges, crypto use in Pakistan will likely keep growing, especially under strict foreign exchange controls limiting cross-border payments.