Govt's have begun exploring, experimenting with central bank digital currencies analysts say authorities see cryptocurrencies as a threat to China s own sovereign digital yuan which is at an advanced pilot stage photo routers
Analysts say authorities see cryptocurrencies as a threat to China’s own sovereign digital yuan, which is at an advanced pilot stage.
KARACHI:
The distinction between what is real and what is not is diminishing rapidly these days. The recent move by Facebook to rebrand itself as Meta speaks about the pace of transition from physical to virtual realm. So far, the younger generation is being prepared to live and breathe in this metaverse where one can do anything or become anyone without even moving out of their couch. However, the architects of these virtual realities are not doing it for charity and the end goal is to monetize the whole experience by creating a parallel financial system free from the shackles of regulations and physical constraints. Here, cryptocurrencies take the stage with a tall promise to fuel this paradigm shift.
To counter the rising demand for digital currencies, governments around the world are exploring or experimenting with central bank digital currencies (CBD Cs). Out of all major economies, China has advanced the furthest towards a fully-fledged CBDC with its digital yuan. The digital yuan is China’s electronic currency. Also known as e-CNY or e-RMB, this new currency stands in direct competition with cryptocurrencies, corporate payment systems and mobile payment apps. China has completely banned all the cryptocurrencies, and the list of countries taking such measures is growing. It now includes major economies such as Indonesia, Turkey, Vietnam while Egypt’s DAR, the country’s primary Islamic advisory body, issued a religious decree in 2018, classifying Bitcoin transactions as harm. Some countries, that have not banned the digital currencies yet, are seen to quickly hardening their stance against cryptocurrencies like India which recently passed legislation to criminalize the possession, issuance, mining, trading and transfer of crypto assets.
Although the strong recommendations, issued recently by the State bank of Pakistan, to ban cryptocurrencies created an uproar on the social and mainstream media, it was not a surprise because central banks all around the globe are growing wary about cryptocurrencies and challenging their existence and authority on regulating the financial system of their countries. The question here is no convenience or mere digitalization of transactions because most monetary transfers are already digital and do not require physical currency.
The other angle is the lack of oversight and usual late/ knee-jerk response by the authorities in Pakistan after many illegal applications have fleeced crypto traders of billions of rupees. Lack of any regulatory framework provided a perfect breeding ground for unscrupulous operators to dodge (not the name of cryptocurrency) the traders by showing affiliation with crypto exchange companies such as finance.
Govt's have begun exploring, experimenting with central bank digital currencies analysts say authorities see cryptocurrencies as a threat to China s own sovereign digital yuan which is at an advanced pilot stage photo routers
Analysts say authorities see cryptocurrencies as a threat to China’s own sovereign digital yuan, which is at an advanced pilot stage.
KARACHI:
The distinction between what is real and what is not is diminishing rapidly these days. The recent move by Facebook to rebrand itself as Meta speaks about the pace of transition from physical to virtual realm. So far, the younger generation is being prepared to live and breathe in this metaverse where one can do anything or become anyone without even moving out of their couch. However, the architects of these virtual realities are not doing it for charity and the end goal is to monetize the whole experience by creating a parallel financial system free from the shackles of regulations and physical constraints. Here, cryptocurrencies take the stage with a tall promise to fuel this paradigm shift.
To counter the rising demand for digital currencies, governments around the world are exploring or experimenting with central bank digital currencies (CBD Cs). Out of all major economies, China has advanced the furthest towards a fully-fledged CBDC with its digital yuan. The digital yuan is China’s electronic currency. Also known as e-CNY or e-RMB, this new currency stands in direct competition with cryptocurrencies, corporate payment systems and mobile payment apps. China has completely banned all the cryptocurrencies, and the list of countries taking such measures is growing. It now includes major economies such as Indonesia, Turkey, Vietnam while Egypt’s DAR, the country’s primary Islamic advisory body, issued a religious decree in 2018, classifying Bitcoin transactions as harm. Some countries, that have not banned the digital currencies yet, are seen to quickly hardening their stance against cryptocurrencies like India which recently passed legislation to criminalize the possession, issuance, mining, trading and transfer of crypto assets.
Although the strong recommendations, issued recently by the State bank of Pakistan, to ban cryptocurrencies created an uproar on the social and mainstream media, it was not a surprise because central banks all around the globe are growing wary about cryptocurrencies and challenging their existence and authority on regulating the financial system of their countries. The question here is no convenience or mere digitalization of transactions because most monetary transfers are already digital and do not require physical currency.
The other angle is the lack of oversight and usual late/ knee-jerk response by the authorities in Pakistan after many illegal applications have fleeced crypto traders of billions of rupees. Lack of any regulatory framework provided a perfect breeding ground for unscrupulous operators to dodge (not the name of cryptocurrency) the traders by showing affiliation with crypto exchange companies such as finance.
You must be logged in to post a comment.