Bitcoin is the well-known type of cryptocurrency and widely being used as a medium of transactions.
Bitcoin, shows the growing popularity of cryptocurrencies.
Bitcoin is one of the types of cryptocurrencies that is protected and has no bills and actual money.
With the publication of a paper in November 2008, the concept of Bitcoins or digital currency was formed. “Bitcoin: Peer to Peer Electronic Cash System” was the title of the document. It primarily focused on how a peer-to-peer transaction could be done ‘digitally.’ The author of this paper used the false name “Satoshi Nakamoto” to hide his identity.
He made a point of proposing the concept of establishing a decentralised framework for making peer-to-peer trades. The concept of digital currency became a reality not long after the publication of this article. In January 2009, the author was the first to mine the first bitcoins.
In 2010, a programmer from Jacksonville, FL, named Laszlo Hanyecz, paid for some Papa John’s pizzas with bitcoins.
Bitcoin became famous around 2011 when it was priced at $1. Things improved significantly, and bitcoin’s value grew to a high of $200 in October of 2011. Unfortunately, it didn’t last long, as Bitcoin’s value fell due to a hacking incident. Bitcoin reached its all-time peak of $1242 in late November of that year. These facts demonstrate that the currency’s value was.
History of Bitcoin in Pakistan:
In Pakistan, cryptocurrencies are also growing in popularity. Pakcoin, the country’s first cryptocurrency, was introduced in 2015. Since 2009, there has been a lot of development in payment systems. We are seeing the rise of cryptocurrency in the country as a result of progress and advances in these systems. Because of customer preferences, the IMF leader urged Pakistan not to ignore virtual currencies in November 2017. People have been buying bitcoin online in Pakistan for a long time.
The State Bank of Pakistan (SBP) and the Federal Board of Revenue, on the other hand, have banned the use of digital currencies in Pakistan’s economy. No digital currency is recognised by the SBP (2016). The government does not support the exchange of such currencies, according to a notification released in April 2018; rather, transactions involving such assets should be registered.
The central bank must, however, recognise that cryptocurrencies are a rapidly growing world concept. To explain these variations, two regulatory pathways may be used. The first is the disclosure of cryptocurrency characteristics by prospectus regulation, which is regulated by the SECP, and the use of these to access all relevant details that would otherwise be excluded, thus providing a secure and stable marketplace for investors. The SBP may also pursue a second regulatory path by attempting to join an international convention for cryptocurrencies.
Future of Bitcoin:
Using a cheaper, simpler, and clearer system for transaction records in developing countries like Pakistan can be a good choice for many. Apart from this, a large number of freelancers saw this digital currency system as a source of great hope as it would be easy for them to save themselves from high transaction charges and many other problems.
In Pakistan, there are no laws prohibiting the use of bitcoins, except that the SBP does not accept or encourage the use of digital currencies.But it’s important to remember that, unlike physical money, cryptocurrency does not need to be controlled by the government. It can be used in coordination with the central bank system, as this method of transaction has helped many people in Pakistan solve their problems.
Since there is no need for a physical bank and no employees to manage, a significant amount of money can be saved in order to operate this open and structured financial system in Pakistan. The National Financial Inclusion Strategy of Pakistan should investigate the matter to see if the digital currency system can be adopted as a beneficial tool for people seeking a better, easier, secure, and open financial system.