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In recent months, the cryptocurrency landscape in Pakistan has witnessed rapid growth, with an increasing number of individuals turning to digital assets as a response to the depreciation of the Rupee. While authorities in Pakistan have expressed their intention to ban cryptocurrencies, a recent survey conducted by global crypto exchange firm KuCoin reveals a different perspective among Pakistani crypto investors.
According to KuCoin’s report titled “Into the Cryptoverse: Understanding Pakistani Crypto Investors 2023,” 33 percent of Pakistani crypto investors view cryptocurrencies as a hedge against the drastic plunge of the Rupee. The survey sheds light on the various use cases for cryptocurrencies in Pakistan, with trading, HODLing (holding crypto assets), peer-to-peer money transfers, and buying Non-Fungible Tokens (NFTs) emerging as the most common activities.
Motivations driving Pakistani crypto investors are diverse, encompassing future aspirations, wealth accumulation, convenience, and protection against currency depreciation. The findings of the survey underscore the potential for mainstream adoption of cryptocurrencies in Pakistan and highlight the versatile ways in which crypto assets are being utilized within the country.
The survey, conducted by a third party on behalf of KuCoin, engaged 500 adult crypto investors between May 5 and May 12, utilizing SurveyMonkey Audience. The demographic breakdown revealed that the majority of crypto investors in Pakistan are male, primarily belonging to the Gen Y (26-39 years) and Gen Z (18-25 years) age groups. The survey also indicates that a significant portion of new investors entered the crypto market within the past three months, demonstrating growing interest among younger generations.
Furthermore, the survey uncovers that a considerable number of crypto investors in Pakistan have made smaller investments, with 40% investing less than Rs 30,000 or $100. This trend is particularly prominent among Gen Z investors, suggesting a cautious approach or limited financial resources among younger individuals venturing into the cryptocurrency space.
Despite the State Bank of Pakistan not officially recognizing crypto assets as digital currencies, stakeholders estimate that the annual trading volume of digital assets in the country ranges from $18 billion to $25 billion. This signifies the significant scale and economic impact of crypto trading in Pakistan, even in the absence of regulatory recognition.
As the crypto industry continues to evolve globally, the dynamics in Pakistan are demonstrating a growing acceptance and utilization of cryptocurrencies. The findings from the KuCoin survey serve as a valuable insight into the evolving landscape of crypto trading in the country. It provides a glimpse into the motivations, use cases, and demographic trends among Pakistani crypto investors, paving the way for further exploration and understanding of this emerging market.
Disclaimer: The content presented in this blog post is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments carry inherent risks, and individuals should conduct their own research and exercise caution when participating in the crypto market.
