Up For Debate – Is the State Bank’s ban on cryptocurrencies justified?

Previously in the Up For Debate series, we discussed whether incubators in Pakistan are effective for the growth of startups or not.

With Facebook placing its bet on its own cryptocurrency “Libra” and Bitcoin coming back to resurgence after crossing $13,000, the question arises whether the State Bank’s ban on cryptocurrencies is justified or not? Being utilized throughout the globe, cryptocurrencies have had their ups and downs but they are here to stay and with Facebook’s bet on, we can be sure that they are the future of trading.

Disclaimer: Up For Debate is a series in which we encourage our readers to participate and share their opinions on subject matters related to tech throughout the world or specifically in Pakistan. The opinions shared in these articles don’t necessarily reflect the viewpoint of TechJuice as a whole.

TechJuice has an entire section of articles dedicated just for cryptocurrencies and the prime focus being Bitcoin. If you see the top bar, you can get the real-time price of Bitcoin, Ethereum and others in USD and PKR. Our coverage in this particular segment started when Bitcoin was on an upward trajectory, even reaching $19,783.06 in 2017. Bitcoins and other cryptocurrencies are backed by Blockchain which secures transactions through a never-ending chain of records and decentralization. This is exactly the problem and the plus point of cryptocurrencies.

If you are to transfer payments through bitcoins or conduct transactions using any cryptocurrency, your transactions would be anonymous and this high degree of anonymity is what troubles the State Bank and should I say all security agencies. Since there is no money trail, it is virtually impossible to track someone who made the transaction. Essentially this creates a security concern if someone is using cryptocurrencies for funding terrorist activity. In Russia, it is reported that criminals rarely use cryptocurrencies to withdraw stolen funds because it is much more easier to get cash. So essentially State Bank’s point regarding the illegal use of cryptocurrency pretty much depends upon the intelligence of the criminals themselves.

However, despite that concern, cryptocurrencies are still being utilized throughout the world. And essentially anyone with idle computing power can mine cryptocurrencies to earn something in their free time so our resources are being utilized all the time. There are numerous benefits of using cryptocurrencies and listing them down would make this article too long to read.

Do you think State Bank’s ban on cryptocurrencies is justified?