Pakistan's Risky Crypto Gamble: What It Means for India
In a move that has raised eyebrows across the border, Pakistan has taken a significant step towards embracing cryptocurrency. This decision, announced on November 26, 2025, by analysts Shobhankita Reddy and Anupam Manur, is not just an economic experiment but a development with serious implications for regional stability and India's national security.
The Economic Peril of a Crypto Pivot
The authors argue that Pakistan's turn to cryptocurrency is a high-stakes gamble. The nation's economy is already on shaky ground, grappling with inflation and debt. Introducing a highly volatile asset class like cryptocurrency could further weaken its financial foundations. This instability is not contained within its borders; it has the potential to create ripple effects in the region, affecting economic partners and adversaries alike.
A New Frontier for Cross-Border Terror Funding
Beyond the economic risks, the most alarming concern for India is the potential for cryptocurrencies to become a new, unregulated avenue for financing cross-border terrorism. The decentralized and often anonymous nature of digital currencies makes them an ideal tool for terrorist organizations to move funds across borders without detection. This could open a dangerous new chapter in the security challenges India faces from its western neighbor, complicating existing counter-terrorism efforts.
In perspective, this policy shift by Pakistan demands close scrutiny from Indian policymakers and security agencies. While the world moves towards digital finance, this particular case underscores the dual-edged nature of technological adoption, where innovation can be exploited to undermine peace and security.
