Pakistan Appoints Binance's CZ Zhao to Lead Crypto Council

Pakistan has taken a significant step towards embracing blockchain technology and digital assets by appointing Changpeng "CZ" Zhao, the former CEO of Binance, as an adviser to its newly formed regulatory body, the Pakistan Crypto Council (PCC). The PCC was established in March with the mandate to oversee the adoption of these technologies within the country. Zhao's appointment was confirmed by Pakistan’s finance ministry and marks a strategic move to attract foreign investment and develop a clear regulatory framework for digital assets.

Zhao, a prominent figure in the crypto industry, served as the CEO of Binance from 2017 to 2023. His resignation followed a guilty plea to charges related to violating US money laundering laws, for which he was sentenced to four months in prison. Despite his legal challenges, Zhao's expertise and influence in the crypto world make him a valuable asset for Pakistan as it seeks to position itself as a hub for blockchain technology and digital assets.

The appointment of Zhao comes at a time when Pakistan is actively working to develop a regulatory framework for digital assets. Bilal bin Saqib, the CEO of the Pakistan Crypto Council, has emphasized the country's commitment to attracting international investment. "Pakistan is done sitting on the sidelines," Saqib stated. "We want to attract international investment because Pakistan is a low-cost high-growth market with [...] a Web3 native workforce ready to build."

Pakistan's interest in crypto is driven by several factors, including its growing population, large diaspora, and a thriving black market for foreign exchange trades. The country has seen a surge in remittances through formal channels, which may indicate a shift from black market transactions to official remittance channels. This trend is significant as it highlights the potential for crypto to play a role in formalizing financial transactions and reducing reliance on informal markets.

The use of stablecoins, which are digital assets pegged to the value of a stable currency like the US dollar, has become particularly relevant in regions experiencing currency depreciation. While specific data on stablecoin usage in Pakistan is limited, surveys indicate 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 seek stable and accessible financial solutions.

Zhao's role as an adviser will focus on cryptocurrency regulation, infrastructure, and adoption. His expertise and connections in the industry could help Pakistan navigate the complexities of regulating digital assets and attract foreign investment. This move is part of a broader effort to position Pakistan as a leader in the adoption of blockchain technology and digital assets, potentially transforming its economy and financial landscape.