The future of cryptocurrency is a complex and rapidly changing landscape, with immense possibilities alongside several challenges. The future of cryptocurrencies depends on various factors worldwide and especially in Pakistan.
The future of cryptocurrency globally:
* Growing Popularity and Mainstreaming: Cryptocurrency is no longer just a sideshow but has become a significant force in the global financial markets. It has found its place in many investors' portfolios. Bitcoin is referred to as "digital gold," and Ethereum has become the center of decentralized applications (dApps) and decentralized finance (DeFi) due to its smart contract functionality.
* Regulatory Clarity and Acceptance: As the popularity of cryptocurrencies is rising, governments and regulatory bodies are trying to create clear rules for them. In countries like the United States, the approval of Bitcoin and Ethereum ETPs (ETPs) has paved the way for institutional investment. Clear regulations can help mitigate risks such as fraud and money laundering, and create new opportunities for businesses and individuals in the crypto sector.
* Technological Advancements: Blockchain technology is continuously evolving, addressing issues such as scalability, interoperability, and energy consumption. The transition of Ethereum to Proof-of-Stake is one example of this.
* Central Bank Digital Currencies (CBDCs): Several central banks around the world are either issuing or researching their own digital currencies (CBDCs). These will be the digital forms of traditional fiat currency, issued under the supervision of the central bank. Although they are different from cryptocurrencies (as they are centralized), they will further strengthen the concept of digital currencies.
* Increasing Use Cases: The use of crypto is expanding from basic transactions to areas such as NFTs, gaming, and transparency in supply chains. Experts believe that in the future, crypto could be used for most transactions, even if many people are using it without realizing they are using crypto.
* Challenges: The challenges facing crypto include market volatility, cybersecurity threats, energy consumption (especially for proof-of-work blockchains), and a lack of awareness and trust among the general public.
The future of cryptocurrency in Pakistan:
The future of cryptocurrency in Pakistan depends on global trends as well as local regulatory decisions. Pakistan is among the top ten countries in the world where crypto is being adopted the most. By 2026, the number of cryptocurrency users in Pakistan is expected to reach 28.9 million.
* Need for a Regulatory Framework: The government's stance on cryptocurrency in Pakistan has been ambiguous for a long time. However, recent developments are giving positive signals. In March 2025, Prime Minister Shahbaz Sharif formally announced the establishment of the Pakistan Crypto Council (PCC), indicating a shift in Pakistan's thinking regarding digital finance. The purpose of this council is to align national policy with the growing popularity of crypto.
* Legal Status: Pakistan is considering a strategy to recognize crypto as a digital asset rather than full legal tender. This would allow for innovation under strict regulatory conditions while maintaining the autonomy of the State Bank of Pakistan (SBP).
* Investment and Economic Benefit: Experts believe that regulating cryptocurrency could lead to increased investment in Pakistan and contribute to an increase in the country's foreign exchange reserves.
* Challenges: There are also concerns related to money laundering, terrorist financing, and a weakening of trust in the rupee regarding crypto in Pakistan. However, a strong legal and regulatory framework could mitigate these challenges.
* Public Acceptance and Use: The popularity of crypto is rapidly increasing in Pakistani society, especially among the youth. Crypto is also seen as a means to bring a large portion of cash into the formal financial system.
In summary, the future of cryptocurrency looks bright, where it will play a significant role in the global financial system. For developing countries like Pakistan, adopting crypto and blockchain technology could provide a unique opportunity for economic innovation, financial inclusion, and becoming a competitive player in the global digital economy. However, this will require prioritizing secure integration, regulatory maturity, and private sector participation.