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Economic Turmoil In Pakistan Could Free Up Cryptocurrency Adoption

Soon to be prime minister, former Pakistan cricketer Imran Khan will be challenged to address the country’s current economic woes, which some have predicted may increase cryptocurrency usage.

An economic crisis is predicted in Pakistan on the eve of a major shift in the political landscape. The Pakistani rupee has depreciated 15 percent against the US dollar in recent months and the country’s net international reserves are now in negative figures. Meanwhile, the demand for dollars for imports exceeds Pakistan’s capacity to earn them through exports.

Amongst this turbulent financial climate, according to Forbes, LocalBitcoins trading volumes are on the increase which is reportedly a reflection of the cryptocurrency markets on the whole in Pakistan, partly fuelled by economic uncertainty and a increased confidence in Bitcoin.

Although Khan’s position is all but sealed, Gareth Leather, the senior Asia economist at Capital Economics suggests it matters very little who actually takes the reigns:

“Whichever party wins Pakistan’s upcoming general election will take over an economy on the brink of a balance of payments crisis. Growth is likely to slow sharply regardless of who wins Wednesday’s election.”

The fact that Pakistan’s Central Bank is curbing access for many Pakistani citizens to US dollars and pressuring fiat currencies means that over time cryptocurrencies will appear more attractive in the way that they have in many other countries with failing economies, such as Venezuela.

One of Pakistan’s first privately generated cryptocurrencies was Pakcoin which has been accepted as a mode of payment in various institutions since its conception over two years ago. In fact, it is said to be the first digital currency accepted by any Asian hospital. Ten retailers now use it in the country so that their customers can pay for goods and services using crypto.

To date, Pakistan has warned banks against ICO’s and cryptocurrencies in general with a statement to that effect in April of this year.

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Jonathan Stacke – Bitcoin in India

Jonathan Stacke – Bitcoin in India:

Jonathan Stacke writes on Bitcoin in India for his latest article on The Genesis Block (@TheGenesisBlock). Excerpts:

“With talk of inflation and capital controls familiar to the bitcoin community, one might think Indian citizens would be jumping at the opportunity to adopt the digital currency, yet the hurdles to wide-scale bitcoin proliferation in India may be significant for the foreseeable future. While demand for gold has grown in India, the multiple applications it offers culturally and industrially in addition to acting as an alternative store of wealth may mean that such demand does not translate to bitcoin.”

“[A correlation exists] between bitcoin adoption and internet penetration in a given country. India, with just 12.6% of its citizens having internet access, has the sixth lowest internet penetration of the 100 largest countries. Despite that fact, the size of the total Indian population – more than 1.2 billion – makes India the third largest internet-using population in the world, with 150 million users, behind only China and the US.”

“It is possible to buy and sell bitcoin through a number of websites including buysellbitco.in and there does appear to be a healthy LocalBitcoins market.”

“Not to be overlooked is India’s mobile phone penetration of 71%, or approximately 900 million total users. […] only 44 million Indians are smartphone subscribers.”

“M-PESA, the mobile payment system that has changed the lives of millions in Kenya recently rolled out in India. […] If mobile payment systems like these gain traction in India as they have in Africa, acceptance of digital currency would prove to be a less significant hurdle.”

“India had the highest remittance volume in the world in 2011 with $58 billion, or 3.1% of GDP, according to the World Bank.”

“Forward-thinking companies like Buttercoin have recently stepped in to apply the potential of bitcoin to these markets […]”

“The Reserve Bank of India has stated that it does not immediately intend to regulate bitcoin, but their historic actions indicate that may change soon enough […]”

 – http://thegenesisblock.com/bitcoin-in-india-drivers-and-barriers-to-adoption
 – (Further discussion of this article)

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