Abstract:
With the advancement of technology, the shift from traditional trading methods using the physical wallet to other methods, such as a "virtual wallet" or "virtual money," is now becoming increasingly popular. Bitcoin (BTC) is the original cryptocurrency and was initially introduced to the public in 2008. Bitcoin is now being commonly utilized as an alternative to cash. Yet, in a number of countries around the globe including Pakistan, trading bitcoin is not legal. The purpose of this project is to understand the possible links of using cryptocurrency in Pakistan and the effects it will have on the financial position of Pakistan. The goal is to analyze if cryptocurrencies can change Pakistan`s financial position. We carried out OLS test using Bitcoin price as independent variable and Habib Bank Ltd share price, Pakistan Stock Exchange and USD as independent variables. For this we used E-views software to get the test results. The data was insignificant which can be due to the selection of our variables due to which we cannot make a supporting decision regarding our test. But generally during our research we can conclude that Pakistan needs to follow the footsteps of developed nation in order to make itself a developed economy. If the ban is not be lifted it could affect the economy negatively as other nations will get more knowledge and access to these cryptocurrencies and Pakistan will be left behind with lack of knowledge and access. Block chain Technology can prove to be effective solution to corruption problems in Pakistan.
