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Cryptocurrencies: The future of financial management

Every now and then a technological revolution comes in that provides almost every country in the world an equal playing field. No matter how big or small a country is, it always has the opportunity to leap ahead irrespective of national interests and global events. Of late, the unique opportunity available to every country is jumping on the bandwagon known as cryptocurrencies. Pakistan has opted to miss the train as State Bank of Pakistan has officially put a prohibition of dealing in virtual currencies/tokens. On the other hand, Japan has embraced cryptocurrencies and only time will tell how the decision of two countries “makes or breaks” the innovation and growth for future generations.

One of the arguments presented against the use of cryptocurrency is the wildly fluctuating prices. However, it is the volatility that offers an insight into the future. All currencies go through cycles of profit and loss. Cryptocurrencies are already going through the same initial cycles that more traditional currencies experience. However, rather than being a cause for concern, this is an indication that cryptocurrency is merely the newest form of currency and acts in the same way as any other. Some people believe cryptocurrencies are being used for money laundering. For this to be true, they first have to be recognized as “money”.

Since the introduction of Bitcoin back in 2009, cryptocurrencies have taken the technological and financial worlds by storm. These digital currencies may have started off as a practically worthless coin only found online, but as popularity grew and anappetite for an anonymous, far more secure method of payment increased, cryptocurrencies have certainly proven that they aren’t something to be ignored.

While Bitcoin is undeniably the most well-known of them all, there are hundreds of cryptocurrencies out there that are well worth taking a look at when it comes to investing like LiteCoin, Ethereum, Ripple etc. Unrestrained by national interests, unaffected by global events, cryptocurrency offers a financial resource that offers much benefits for the future. According to experts, cryptocurrency will replace all other forms of currency by 2030. Yet the question is, how prevalent is it right now, and does that offer an indication of its future existence and potential? The answer lies in being aware of the businesses that are already integrating Bitcoin payments into their choice of options for consumers, and with big names like Microsoft and Subway already implementing cryptocurrency payments, it’s clear that this is a form of currency that is not going anywhere anytime soon.


Between savings fees and transaction costs, customers spend vast amounts of money on propping up banks and giving them more power. However, crypto finances cut that factor out, and are widely considered to be the future of financial management. There is a distinct lack of intermediaries when it comes to digital finances, and that offers the possibility of much disruption when it comes to banking. Although users will still have to make use of digital currency wallets, the reduced costs combined with the absence of those costly bank fees are one of the major reasons why cryptocurrency advocates are so confident that the technology will eventually replace traditional financial services.

There is currently no oversight when it comes to trading via blockchain, which is one of the major attractions of it. Yet it’s also widely considered to be a flaw, with payments often utilized in ways that evade the tax office. For that reason alone, it is increasingly likely that governments the world over will adopt widespread actions in order to have more control over the anonymous payment system, and while that may be considered a setback for current users, it also offers a stability and respectability that will attract more mainstream use. When it becomes adopted by the majority, then it may end up becoming the standard when it comes to online transactions. Regulations around cryptocurrencies and online payments are already well on their way to being rolled out across the world, and so transactions, no matter their nature, are likely to be far safer, and the market is likely to settle and become less volatile.

The writer is a Karachi based freelance columnist and is a banker by profession. He could be reached on Twitter @ReluctantAhsan

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