Blockchain technology is the need of the hour and has applications in every sector. The mechanical industry, food industry, healthcare, property dealing, customs services, legal operations, stock exchange, data management, identity management, etc., can adopt blockchain to avoid corruption and waste of time.
Blockchain is a decentralised database used to store information electronically in digital format. It provides data integrity and security without generating the need for a third party. This emerging technology facilitates the process of recording transactions and tracking assets in a business network.
Blockchain is an emerging technology, and its use will improve the efficiency of many sectors and transparency. In the past, Pakistan has tested this technology in the banking sector to bring remittances from Malaysia, and this experiment has proved successful.
Recently, the Ministry of Information Technology and Telecommunication has decided to formulate a blockchain policy. In this context, the committee will prepare an initial draft of the policy and then finalise it after consultation with the industries.
However, it is pertinent to mention that, earlier, Pakistan Telecommunication Authority (PTA) had decided to restrict the use of cryptocurrencies in the country as it was believed that it will generate chances of money laundering and terror financing. In order to follow this decision, the policy does not support the use of cryptocurrency in the country. According to the policy committee, cryptocurrency is a small part of blockchain technology and the State Bank and Ministry of Law will decide on regulating cryptocurrency under the direction of the Sindh High Court.
Formulating such policies is considered a welcoming move for enhancing security, greater transparency, and instant traceability in the business network. Moreover, the policy will also support a system where personal data is secured using blockchain technology to ensure people feel safe in a digital environment. Besides this, Pakistan should immediately make further policies and reforms to bring a technology innovation ecosystem to the country.
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