Bitcoin is an interesting evolution in payment solutions. It is decentralized, open to everyone on the planet and backed by the most powerful distributed computing network in the world. But why does Bitcoin matter to Pakistan?
There are two main reasons:
Cheap money transfer: International payments are expensive. We don’t have Paypal in Pakistan so receiving or sending small amounts is quite costly. Bitcoin is cheap and open to everyone including Pakistanis.
Wide acceptability: Bitcoin transactions are irreversible so merchants are happy to take bitcoin. The fastest adopters are, predictably enough, in the technology sector. Lots of hosting providers and domain registrars now take bitcoin. Pakistani freelancers can now purchase these services and setup an online portfolio easily.
Currently Bitcoin is primarily a tool for those who are already conducting transactions online i.e. freelancers and free agents. In the future, however, it might prove to be a conduit for remittances from a wider audience i.e. the millions of expatriate Pakistanis working in countries around the world.