Social, business, and political interest in cryptocurrencies, blockchain, and Web 3.0 technologies (commonly known as Web3) has grown exponentially over the past few months.
The volatility in crypto-asset prices and the promise of exponential returns are the main drivers of interest, and the sharp rise in crypto-asset investors has also forced regulators to focus on developing this ecosystem. In the Chain analysis 2021 Global Cryptocurrency Adoption Index, Pakistan ranks third in terms of cryptocurrency adoption;
We estimate that Pakistan has more crypto assets than the publicly traded stock market.
1 However, this growth has created some challenges for the country and regulators due to a $100 million scam that has recently come to the attention of authorities.
2 Therefore, legislators must address emerging issues, particularly in relation to investor protection, financial irregularities (which could lead to FATF), international financial markets and terrorism. – Financial management) and external sector stability are threatened by low exchange rates.
It is also crucial for policy makers to make sure that the emerging ecosystem is not just about investing in cryptocurrency, but has a special opportunity for Pakistan and especially digital youth.
The recognition of this opportunity is in line with Pakistan’s recently announced national security policy, which advocates the creation of “sufficient public and private capacity to enable Pakistan to reach the new technological age”.
3 Further progress in cryptocurrency and blockchain technology is an important foundation for sustainable development. from blockchain technology.
Internet economy. This change has solidified and created new business opportunities: The emerging ecosystem is expected to grow more than 40% per year, which will increase the market value of blockchain technology (of which cryptoassets are key commodities) by around $1.
From $5 trillion today to nearly $50 trillion in 2030.
Pakistan’s talent base is equipped to realize the benefits of this opportunity through domestic innovation for the global Web3 ecosystem. If it is possible to do this, these skills can bring in a lot of money in foreign currency, create a competitive international domestic business and create opportunities for the prosperity of the country.
According to our panel of experts, this new ecosystem could generate approximately $100 billion in total revenue to the tech industry over the next twenty-five years.
This talent opportunity can be beneficial for foreign exchange, help slow the brain drain of top talent, and bring billions of dollars into the local economy through direct and indirect incomes, investment in new businesses and excess savings.
Taking advantage of this opportunity requires collaboration to train skills, create access and output from crypto assets, collect and convert them into local currency, and a good environment based on regulatory policies that support innovation and entrepreneurship. This performance should spur the creation of a new Web3 marketplace for citizens to own, trade and sell crypto assets.
Formalization of the sector will generate additional income from capital gains in the short term and from direct and indirect business in the medium and long term.