Pakistan appoints Changpeng Zhao as crypto adviser as adoption heats up
Former Binance CEO Changpeng “CZ” Zhao has been appointed as an adviser to Pakistan’s Crypto Council, a newly formed regulatory body tasked with overseeing the country’s embrace of blockchain technology and digital assets.
The appointment was confirmed by Pakistan’s finance ministry and reported by Bloomberg on April 7. Zhao will advise the regulatory body on cryptocurrency regulation, infrastructure and adoption, Bloomberg reported.
CZ is seen signing documents during his appointment by Pakistan’s Ministry of Finance. Source: Business Recorder
Zhao is one of the most recognizable names in crypto, having served as CEO of Binance between 2017 and 2023. He resigned as CEO of the exchange in November 2023 after pleading guilty to charges related to violating US money laundering laws. He was later sentenced to four months in prison.
For Pakistan, Zhao is a high-profile appointment that could potentially help the country lure foreign investment in an industry that has taken on new strategic importance.
In March, the CEO of Pakistan’s Crypto Council, Bilal bin Saqib, told Bloomberg that the country plans to develop a clear regulatory framework for digital assets.
“Pakistan is done sitting on the sidelines,” Saqib said. “We want to attract international investment because Pakistan is a low-cost high-growth market with […] a Web3 native workforce ready to build.”
Related: Binance co-founder Changpeng Zhao to advise Kyrgyzstan on blockchain tech
Crypto in Pakistan: Adoption and pain-points
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 value of cash sent to Pakistan through formal remittance channels surged at the end of last year amid a countrywide crackdown on black market dollar trades.
“This increase might be because remittances that had previously been sent using the black market are now being sent via official channels,” John Ashbourne, an economist at Fitch Solutions, told Bloomberg.
Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, largely due to strong retail adoption and transactions at centralized services.
In 2024, Pakistan ranked ninth among Central and Southern Asia and Oceania (CSAO) countries. Source: Chainalysis
Stablecoins have emerged as one of crypto’s most prominent use cases in regions with high demand for US dollars due to currency depreciation.
Although data on stablecoin usage in Pakistan is slim, a 2023 KuCoin survey revealed that 33% of local crypto investors use digital assets to hedge against the rupee’s devaluation.
A more recent survey conducted by Bitget found that 46% of respondents in South Asia — a region that includes India, Pakistan, Bangladesh and others — use digital assets for speed and accessibility of transactions.
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United States President Donald Trump announced on Sunday that most Americans will receive a $2,000 “dividend” from the tariff revenue and criticized the opposition to his sweeping tariff policies.
“A dividend of at least $2000 a person, not including high-income people, will be paid to everyone,” Trump said on Truth Social.
The US Supreme Court is currently hearing arguments about the legality of the tariffs, with the overwhelming majority of prediction market traders betting against a court approval.
Kalshi traders place the odds of the Supreme Court approving the policy at just 23%, while Polymarket traders have the odds at 21%. Trump asked:
“The president of the United States is allowed, and fully approved by Congress, to stop all trade with a foreign country, which is far more onerous than a tariff, and license a foreign country, but is not allowed to put a simple tariff on a foreign country, even for purposes of national security?”
Investors and market analysts celebrated the announcement as economic stimulus that will boost cryptocurrency and other asset prices as portions of the stimulus flow into the markets, but also warned of the long-term negative effects of the proposed dividend.
Related: Bitcoin faces ‘insane’ sell wall above $105K as stocks eye tariff ruling
The proposed economic stimulus will boost asset markets, but at a steep cost
Investment analysts at The Kobeissi Letter forecast that about 85% of US adults should receive the $2,000 stimulus checks, based on distribution data from the economic stimulus checks during the COVID era.
While a portion of the stimulus will flow into markets and raise asset prices, Kobeissi Letter warned that the ultimate long-term effect of any economic stimulus will be fiat currency inflation and the loss of purchasing power.
“If you don’t put the $2,000 in assets, it is going to be inflated away or just service some interest on debt and sent to banks,” Bitcoin analyst, author, and advocate Simon Dixon said.
“Stocks and Bitcoin only know to go higher in response to stimulus,” investor and market analyst Anthony Pompliano said in response to Trump’s announcement.
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Italian banks have expressed their support for the European Central Bank’s (ECB) digital euro initiative, but are calling for the implementation costs to be spread out over several years due to the financial burden it places on the sector.
“We’re in favour of the digital euro because it embodies a concept of digital sovereignty,” said Marco Elio Rottigni, General Manager of the Italian Banking Association (ABI), during a press seminar in Florence, Reuters reported on Friday.
“Costs for the project, however, are very high in the context of the capital expenditure banks must sustain. They could be spread over time,” Rottigni added.
The comments come as the central bank digital currency (CBDC) project has met resistance from some French and German banks, who fear the introduction of an ECB-backed retail wallet could drain deposits from commercial lenders.
Related: Digital euro CBDC is ‘symbol of trust in our common destiny’ — ECB head
ECB sets 2029 target for digital euro launch
At its October 29–30 meeting in Florence, the ECB’s Governing Council approved moving the project into its next phase after a two-year preparatory period. A pilot phase is expected to begin in 2027, with a full rollout tentatively scheduled for 2029, pending the adoption of EU legislation in 2026.
European Parliament member Fernando Navarrete, who is leading the parliament’s review of the proposal, recently presented a draft report calling for a scaled-down version of the digital euro to protect private payment systems such as Wero, a joint initiative by 14 European banks, per the report.
Rottigni said Europe should pursue a “twin approach,” combining the ECB’s digital euro with commercial bank-backed digital currencies. “What Europe shouldn’t do is fall behind,” he added.
Related: Malaysia’s central bank sets three-year roadmap to pilot asset tokenization
ECB signs deals with tech firms for digital euro development
Last month, the ECB finalized framework agreements with seven technology providers to support the development of a potential digital euro. The agreements cover fraud and risk management, secure payment data exchange, and software development.
Among the firms involved are fraud-detection specialist Feedzai and security technology company Giesecke+Devrient (G+D).
According to the ECB, the selected firms will also develop features such as “alias lookup,” enabling users to send or receive payments without knowing the recipient’s payment service provider and offline payment capabilities.
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