Pakistan Appoints Changpeng Zhao To Lead The Rise Of Cryptocurrencies

Pakistan, often perceived as a sleeping economic giant, seems determined to rewrite its financial destiny. In a strategic masterstroke, the country has just appointed Changpeng Zhao (CZ), former CEO of Binance, as a key advisor to its Crypto Council (Pakistan Crypto Council – PCC). A bold, almost provocative decision, as the figure embodies both the promises and the turbulence of the crypto ecosystem. While the rupee wavers and capital flees, Islamabad is betting on digital assets to reshape its economic landscape.

CZ in Pakistan: a risky bet or a stroke of genius?

The appointment of CZ, announced on April 7 by the Ministry of Finance, is nothing short of surprising. The man, sentenced to four months in prison in the United States for anti-money laundering violations, carries a heavy past.

Nevertheless, his expertise is undeniable: under his leadership, Binance has become the world’s leading exchange.

For Bilal bin Saqib, director of the PCC, this collaboration symbolizes a break from traditional approaches. “Pakistan can no longer sit idly by”, he asserts, emphasizing the urgency of attracting foreign investors to an already dynamic Web3 labor market.

CZ’s role will be threefold: structuring a regulatory framework, modernizing blockchain infrastructure, and boosting crypto adoption. A significant challenge for a country where the banking sector remains hesitant.

But timing is crucial. As the government tightens the screws on the black market for currencies, official money transfers have surged at the end of 2023. This is evidence that informal flows are seeking legal channels — and cryptocurrencies could become one.

The question of symbolism remains. By teaming up with CZ, Pakistan embraces a paradox: drawing from the knowledge of a controversial figure to build credibility. A risky calculation, but perhaps visionary. As an analyst from Fitch Solutions points out, “economic urgency outweighs ideological reluctance”.

Crypto in Pakistan: between the rush for digital gold and pragmatic realities

Behind the official announcements lies a tangible reality: Pakistan is already a fertile ground for cryptocurrencies.

Ranked 9th in crypto adoption in Asia (Chainalysis, 2024), the country is relying on stablecoins to counter the erosion of its currency. Indeed, local investors are using these assets as a shield against devaluation.

Cross-border transfers, vital for a diaspora of 9 million people, also find an alternative, less expensive channel than traditional services.

However, the crypto boom is not limited to value preservation. According to Bitget, 46% of South Asians prefer digital assets for their speed and accessibility. An advantage for Pakistan, where only 21% of the population has a bank account. Stablecoins, backed by the dollar, thus fill a gap — despite the hostility from central banks.

Nonetheless, the path to massive adoption remains fraught with obstacles. The absence of a clear legal framework, coupled with persistent distrust of decentralized platforms, still hampers innovation. This is where CZ’s experience could make a difference: having previously faced notable regulatory missteps at Binance, he now possesses a strategic vision of the pitfalls to avoid. In such a volatile context, where bitcoin itself falters in the face of market uncertainties, it becomes essential to understand the dynamics at play. Here are the 5 facts to know this week to understand the current crisis.