CZ Appointed Advisor to Pakistan Crypto Council

Changpeng "CZ" Zhao, the former CEO of Binance, has been appointed as a strategic advisor to the Pakistan Crypto Council (PCC). This appointment is a significant move by Pakistan to foster the adoption of blockchain technology and digital assets within the country. The appointment was confirmed by Pakistan’s finance ministry and reported on April 7. Zhao will advise the regulatory body on cryptocurrency regulation, infrastructure, and adoption.

Zhao, a prominent figure in the crypto industry, served as the CEO of Binance from 2017 to 2023. He stepped down from his role in November 2023 after pleading guilty to charges related to violating US money laundering laws and was subsequently sentenced to four months in prison. Despite his legal issues, Zhao's appointment is seen as a high-profile move that could potentially attract foreign investment in Pakistan's burgeoning crypto industry.

The PCC was established in March with the aim of overseeing the adoption of blockchain technology and digital assets. Bilal bin Saqib, the CEO of the PCC, has stated that Pakistan is eager to develop a clear regulatory framework for digital assets and attract international investment. Saqib emphasized that Pakistan is a low-cost, high-growth market with a workforce ready to build in the Web3 space.

Pakistan has long been considered a potential hub for crypto adoption due to its growing population, large diaspora, and thriving black market for foreign exchange trades. The country's value of cash sent through formal remittance channels surged at the end of last year amid a crackdown on black market dollar trades. This shift towards official channels is seen as a positive development for the crypto industry, as it indicates a growing acceptance of digital assets.

Stablecoins have emerged as a prominent use case for crypto in regions with high demand for US dollars due to currency depreciation. Although specific data on stablecoin usage in Pakistan is limited, surveys have shown that a significant portion of local crypto investors use digital assets to hedge against the rupee’s devaluation. This trend is likely to continue as more people in the region turn to digital assets for speed and accessibility of transactions.

Zhao's role as a strategic advisor will involve providing guidance on regulation, infrastructure, education, and adoption. He will work closely with the Pakistani government to help shape the country's crypto landscape and attract foreign investment. This appointment is a significant step for Pakistan as it seeks to establish itself as a leader in the global crypto industry.