Digital Currencies in Pakistan and their Potential Role in Global Economic Relations: An Analysis

This paper explores the emergence of digital currencies in Pakistan and their potential role in reshaping the nation's position in global economic relations. It assesses the latest trends concerning the regulation of the technology and its exploration, drivers of adoption, and key impediments to its deployment. Including both qualitative information gathered during review of policy documents and policy, as well as quantitative analysis of assumed economic variables. Though Digital currencies are restricted by low internet connectivity and mobile phone smart device adoption in Pakistan the progress of payment systems Such as JazzCash & Easypaisa indicates future progress. But challenges such as blockchain readiness and cybersecurity are still need to be discussed. For blockchain to be fully adopted, there is need to pursue more investment in educating talent, and the regulatory framework. Security is key to the public trust and so it is important to secure wallets, payments and transactions data in particular. Opportunities and threats exist in Pakistan’s regulatory environment, nonetheless the prospects for developing the CBDCs still exist. Solving these challenges entail to define legal status, to simplify the process of licensing and to protect the consumer’s rights effectively. E-commerce conducted through the use of incorporative payment services in combination with CBDCs provides an opportune means of boosting Pakistan’s financial and economic outlook by catalyzing remittances transfer, cutting on cost, and expediting cross-border transfers as well as increasing access to financial services. Educational campaigns, influence from friends or relatives, and new trust-building JVs can successfully improve the situation with the adoption of digital currencies in Pakistan. There are also likely to increase the adoption of CBDCs, blockchain payment platforms, and mobile wallets if the efforts are implemented effectively.