This is apropos a Business Recorder op-ed “The phenomenon of cryptoassets” carried by the newspaper the other day. The writer, Qumber Rizvi, has argued, among other things, that “Although the State Bank of Pakistan has at present declared that cryptoassets are not legal tender “issued or guaranteed” by the country’s government, public interest and investment in the digital tokens continues to grow exponentially.

This begs the question, what is stopping the government from regulating these assets when they clearly depict a huge opportunity not just from a financial perspective, but also from a technological angle as well? Regulated markets see significant gains in technological and socio-economic growth through the creation of adjacent industries, empowered entrepreneurs and new skills requirements.”

It is, however, quite strange that the writer, who has strongly advocated the case of cryptoassets, has not mentioned the fact that consumers who have bought cryptoassets through an exchange platform could lose their money if that exchange platform is hacked or goes out of business. There are many other downsides or the negative aspects of cryptoassets otherwise regarded as good or desirable. This matter, in my view, deserves a well-informed response or strategy.

Mehdi Hasan (Karachi)

Copyright Business Recorder, 2022