Well, the countries are aware of the importance of the crytos, but they are afraid of the impact that it'll have on the banking sector of that country. I believe this banking system will soon become obsolete and new more vibrant ways of financial market will take over centered by crypto. This banking system wasn't a good one in the first place, there were actually there to milk the people of their hard earn money and now when the technology has granted somewhat freedom from this pathetic banking system, the govts are afraid to let it take over.
The banks have it on their minds that they can earn only through interest on money and this is a system which is destroying them and their businesses that is why it is forbidden because it sucks financial system and economy.
If they find other ways for making money and adopt them in their banking system then they will flourish. For example they have to provide services for the crypto community like the exchanges are doing one example for them is binance which is earning more money than the bigger banks of Europe (i saw that in an article, which I cannot find it)
I think Banking system and crypto can find a way to work together and compliment each other. Example, Banks can introduce crypto based accounts and crypto based products like Long term fixed deposit of bitcoin where profit is paid in fiat currencies , ETF, loans and many more. I think once crypto is legalized , we will see lot of new crypto based products in the market. As well as people will prefer to open accounts in Banks because their funds will be more secure compared to Exchanges. Banks will definitely provide guarantee of security of funds.
https://www.bcg.com/publications/2020/how-banks-can-succeed-with-cryptocurrencyRecently someone told me about State bank hiring blockchain professionals and then i checked their website and found out that yes, they are actually hiring Blockchain professionals. Below is what the ad says
Virtual Assets Expert (on contract)
Key responsibilities of the incumbent will include, but not limited to, the following:
Contribute in SBP’s overall virtual asset strategy and activities.
Responsible to provide support, guidance, on virtual assets, blockchain and Distributed Ledger Technology (DLT) to both internal and external stakeholders in areas such as architecture, design, system requirements and operational issues.
Responsible to help in formulating policy/regulations/guidelines in the area of virtual assets to meet requirements of the industry while also analysing its impact on overall financial stability.
Ability to identify technical and policy implications of virtual assets solution designs in financial services based on technological innovations, while understanding the roles of miners, virtual asset exchanges, policy makers and financial industry etc.
Contribute in developing risk oversight framework for virtual assets within the SBP.
Conduct annual effectiveness reviews to identify improvement areas and implement necessary actions.
Monitoring on-going compliance with and effectiveness of the risk control environment and overall exposure and risk levels to Virtual Assets.
Coach and deliver ongoing training and development of people for Virtual Assets.
link :
https://www.sbp.org.pk/careers/2021/Dec/VAE.htmSo our govt and institutions are actually moving in the right direction. And i think they are not hurrying into it which is a good thing, instead of just falling for that
Waqar Zaka, they are actually hiring professionals and are going to formulate policies accordingly. Movin in the right direction now, Alhamdullilah.
