Pakistan To Introduce Digital Currency to Curb Black Money
Pakistan is struggling with inflation and worst economic crisis of the history. This means that a lot of economic repercussions hinder the economic growth. The prime aspects of the country’s downtrend are corruption and Black money. The government face such challenges because the Black money possessors do not pay taxes. Therefore, Pakistan To Introduce Digital Currency to Curb Black Money. So, to deal with the issue, digital currency will help Pakistan to confront the major problem in Pakistan. As it will overcomes the economic challenges, thus, it will make it difficult to hide Black money for the people.
A Quick Review on Digital Currency
Digital currency is an innovative type of money that is not controlled by any government or central bank. In case of Pakistan, State Bank of Pakistan (SBP) will handle the digital currency cash flow. The currency will be based on cryptography which is a way of encrypting data to make it secure. Unlike conventional currency notes or coins, digital currency has no physical existence. Rather, they are digitally stored in a Centrally controlled by block chain algorithm. The currency can be used to make payments for stuff and services online and in stores. People can also use it to send and receive money between people in different countries. Digital currency is disbursed in digital wallets to be used through smartphones or POS.
How Can Digital Currency Help Control Black Money
Digital currency has the potential to curb black money in Pakistan in a number of ways. First, digital currency is transparent. All transactions are recorded on a public ledger. It means that it is difficult to hide transactions from the government.
Secondly, digital currency is secure. It is very difficult to counterfeit digital currency or hack into digital wallets. This makes it a much safer way to store money than traditional methods, such as cash or gold.
Thirdly, digital currency is convenient. It is easy to use and can be accessed from anywhere in the world. This makes it an attractive option for people who want to avoid the hassle of traditional banking services.
What Should Govt. Do to Promote Digital Currency
Right now, there some challenges to using digital currency to curb black money in Pakistan. Government of Pakistan should opt for the following instincts to popularize the use of Digital Currency. As a leader of investment with real estate transactions, nexthome.pk has been keeping track of way of secure transactions. So, we extend some additional thoughts on how digital currency can be used to curb black money in Pakistan. The government should offer incentives and gifts people who use digital currency. In possible incentive, there can be the tax breaks or discounts on items and services.