Pakistan Says Risks From Cryptocurrencies Outweigh Its Benefits

Pakistan’s central bank said that risks posed by cryptocurrencies outweigh its benefits, doubling down on its earlier message to stay away from investments in digital currencies.

In emerging markets and developing countries struggling with large informal economies, there is a risk of unregulated currencies being used for transactions instead of the nation’s legal currency, Reza Baqir, governor of State Bank of Pakistan, said. Their speculative nature, acute price fluctuations, and decentralized nature can pose a risk to financial and monetary stability for a developing country, he said in a speech on Feb. 14.