Sharmila Faruqui voices concerns about risks of adopting digital currencies
Lawmaker Sharmila Faruqui has voiced her concerns over the potential risks tied to digital currency adoption in Pakistan.
Taking to Instagram, she stated: “In my question to the Minister for Finance today in the National Assembly, I raised concerns about the potential risks of adopting digital currencies.”
She added: “As countries like El Salvador, Nigeria, and China have learned, these technologies can pose serious challenges, including financial instability, cybersecurity threats, low public adoption, and privacy concerns.”
Faruqui stressed the need for caution, saying: “It is crucial that Pakistan addresses these risks before moving forward, ensuring our financial stability and national security remain uncompromised.”
Reports suggest that economists warn that Pakistan’s weak regulatory infrastructure, low digital literacy, and limited access to banking in rural areas could make the transition to digital currencies particularly risky.
Additionally, the lack of robust systems to counter cyberattacks, combined with the premature introduction of digital currency, could leave the country’s financial system vulnerable to hacking and data theft.
Experts have also emphasised the urgent need for comprehensive digital asset legislation, cautioning that, without proper regulation, digital currencies could be exploited for money laundering, tax evasion, and even financing illicit activities.
Critics warn that if digital currency is not implemented carefully, it could disrupt monetary policy, destabilise the banking system, and potentially accelerate capital flight from Pakistan’s fragile economy.
Moreover, the general public’s lack of understanding about digital currencies continues to be a major obstacle. Experts argue that public acceptance remains unlikely without a clear national policy and a widespread public education campaign.