Cryptocurrency and Pakistan’s Stance MCQs are essential for CSS aspirants preparing for Economics, Banking, and Financial Regulations. The emergence of Bitcoin, Ethereum, and blockchain-based financial systems has led to global discussions on digital assets, investment opportunities, and regulatory challenges. While many countries have adopted clear crypto regulations, Pakistan has maintained a restrictive approach, citing concerns over financial security, money laundering, and economic stability. It is important for CSS aspirants to understand Pakistan’s position on cryptocurrency, legal environment, and future trends in finance.
H2: Global Cryptocurrency Trends and Regulatory Measures
Cryptocurrencies are based on decentralized blockchain technology, enabling secure, quick, and borderless transactions. El Salvador, UAE, and the USA have moved to incorporate crypto into their financial systems, while China and India have imposed stringent regulations or prohibitions. The increasing use of Central Bank Digital Currencies (CBDCs), including China’s digital yuan, indicates a worldwide trend toward government-controlled digital finance. But governments have tightened crypto regulations amidst fears of market volatility, cyber fraud, and illegal activities. CSS candidates are required to understand how cryptocurrency is shaping global finance markets and regulation policies.
H3: Pakistan’s Ban on Cryptocurrency and Future Outlook
The State Bank of Pakistan (SBP) has outlawed cryptocurrency, limiting crypto trading, transactions, and banking participation based on terror financing, tax evasion, and fraud risks. The ban notwithstanding, crypto usage is increasing, particularly among freelancers, investors, and remittance users via peer-to-peer (P2P) exchanges. The government is exploring other digital financial alternatives, such as a possible Central Bank Digital Currency (CBDC) to encourage secure digital payments. Pakistan’s introduction of Raast, an electronic payment system, is focused on streamlining financial services and fintech innovation. Repeated practice of MCQs and free flashcards on cryptocurrency and Pakistan’s policy will assist CSS aspirants in comprehending economic policies, blockchain technology, and the future of digital finance in Pakistan.
Pakistan’s central bank has taken what stance on cryptocurrency?
A) Fully legalized it
B) Banned it completely
C) Allowed regulated trading
D) Supports but does not regulate
Which organization in Pakistan is responsible for financial regulations, including cryptocurrency?
A) State Bank of Pakistan (SBP)
B) Securities and Exchange Commission of Pakistan (SECP)
C) Pakistan Stock Exchange (PSX)
D) Federal Board of Revenue (FBR)
What was the main reason for Pakistan’s ban on cryptocurrency?
A) Environmental concerns
B) High volatility and financial risks
C) Lack of public interest
D) Strong regulation by global financial bodies
Which cryptocurrency is the most widely recognized globally?
A) Dogecoin
B) Ethereum
C) Bitcoin
D) Ripple
Which global organization has advised Pakistan on regulating cryptocurrency?
A) World Bank
B) International Monetary Fund (IMF)
C) United Nations (UN)
D) World Trade Organization (WTO)
In which year did the State Bank of Pakistan (SBP) issue a ban on cryptocurrency transactions?
A) 2015
B) 2018
C) 2020
D) 2022
Which digital currency is considered the backbone of decentralized finance (DeFi)?
A) Litecoin
B) Tether
C) Bitcoin
D) Ethereum
Which Pakistani province proposed using cryptocurrency for mining and tax collection?
A) Punjab
B) Sindh
C) Balochistan
D) Khyber Pakhtunkhwa (KP)
What is blockchain technology?
A) A new type of internet browser
B) A digital ledger used to record transactions
C) A government policy for cybersecurity
D) A financial regulation method
Which country has recognized Bitcoin as legal tender?
A) China
B) USA
C) El Salvador
D) India
Which Pakistani financial authority warned against investing in cryptocurrency?
A) National Accountability Bureau (NAB)
B) Federal Investigation Agency (FIA)
C) State Bank of Pakistan (SBP)
D) Ministry of Finance
What is a key feature of cryptocurrency transactions?
A) Centralized banking control
B) Fast but high transaction fees
C) Decentralization and anonymity
D) Requires government approval
Which organization monitors money laundering related to cryptocurrency in Pakistan?
A) Financial Action Task Force (FATF)
B) Pakistan Telecommunication Authority (PTA)
C) Federal Investigation Agency (FIA)
D) Ministry of IT & Telecom
What is the primary concern of Pakistan’s government regarding cryptocurrency?
A) Lack of awareness
B) Cybersecurity risks
C) Use in illegal financial activities
D) High taxation issues
Which country has imposed a strict ban on cryptocurrency trading?
A) Japan
B) USA
C) China
D) Canada
What is the name of Pakistan’s proposed national digital currency?
A) PakCoin
B) Digital Rupee
C) E-PKR
D) CryptoPak
Which Pakistani government agency has blocked cryptocurrency trading websites?
A) SECP
B) FIA
C) PTA
D) NAB
Which cryptocurrency operates on a proof-of-stake (PoS) model?
A) Bitcoin
B) Ethereum (after upgrade)
C) Dogecoin
D) Litecoin
Which Pakistani city has seen a rise in cryptocurrency mining activities?
A) Karachi
B) Lahore
C) Peshawar
D) Quetta
Which of the following is NOT a cryptocurrency?
A) Ethereum
B) Tether
C) Binance Coin
D) PayPal
Which country has the largest cryptocurrency mining industry?
A) Russia
B) China
C) USA
D) Iran
What is the term for converting cryptocurrency into traditional money?
A) Trading
B) Mining
C) Fiat conversion
D) Staking
What does “HODL” mean in cryptocurrency slang?
A) Hold on for dear life
B) High-output digital ledger
C) A type of mining process
D) Government-backed coin
What is the maximum supply of Bitcoin?
A) 100 million
B) 21 million
C) 50 million
D) Unlimited
Which Pakistani bank has explored blockchain for financial transactions?
A) National Bank of Pakistan
B) Meezan Bank
C) HBL
D) UBL
What is the process of verifying cryptocurrency transactions called?
A) Staking
B) Mining
C) Trading
D) Burning
Which factor influences cryptocurrency prices the most?
A) Government salaries
B) Public demand and market trends
C) Fixed global rates
D) Oil prices
Which Pakistani authority monitors financial crimes, including cryptocurrency scams?
A) SECP
B) NAB
C) FIA
D) PTA
What is the name of the first decentralized cryptocurrency?
A) Ethereum
B) Ripple
C) Bitcoin
D) Dogecoin
Which Pakistani law could be updated to regulate cryptocurrency?
A) Electronic Transactions Ordinance 2002
B) Banking Act 1997
C) PECA 2016
D) Pakistan Penal Code
