Sudden Resignation of Cryptocurrency Advocate in Pakistan Stirs Up Controversy

The unexpected resignation of Zia Ullah Bangash, a government adviser who was beloved by the cryptocurrency trading community, has brought about condemnation by Pakistani advocates of digital currency adoption. Bangash announced that he was leaving his post as technology adviser of the Khyber Pakhtunkhwa province on Saturday; this announcement was followed by numerous calls for Prime Minister Imran Khan to step in and order a reinstatement.

Although Bangash cited personal reasons for quitting his advisory post, many people in Pakistan believe that he was forced out by political opponents who have ties to criminal organizations in the province. Pakistan is believed to be a prime candidate for cryptocurrency adoption because many consumers feel that fiat transactions are risky to the point of being dangerous in some cases. The Pakistani rupee lacks stability and is constantly at the mercy of counterfeiters as well as black market money changers. Similar problems have been cited with regard to American dollars that circulate in some regions of the country.

Cryptocurrency enthusiasts in Pakistan believe that the country is on the verge of experiencing a major devaluation similar to what has happened in Venezuela and Zimbabwe, two countries where hyperinflation has made their national currencies worthless. Bangash was known to be an adviser who insisted on authorizing the use of digital currencies; furthermore, he thought that trading cryptocurrency tokens was an economic activity akin to bartering or trying to negotiate bargains at street markets. To this effect, Bangash supported e-commerce efforts by small business owners to set up stores on Facebook.

Bangash was also a strong proponent of developing a digital version on the rupee by taking advantage of the Ethereum blockchain. The province where he provided his professional counsel is one of the most affected by counterfeiters and smugglers. Other blockchain activists lauded Bangash for his insistence on developing distributed ledger applications to modernize certain systems such as the Pakistani civil registry. Some countries are in greater need of a digital revolution than others, and many Pakistani citizens fear that their country could fall far behind India and other Asian nations unless a push for modernization takes place sooner than later.