This YouTube interview features Kamal Cheema, an IT expert, discussing Pakistan’s potential to leverage technology for economic growth and social progress. Key topics include: the importance of internet access as a basic human right, the untapped potential of Pakistan’s young population and high mobile penetration for technological advancements, the benefits of adopting technologies like barcoding and cashless payment systems, and the significance of cryptocurrency and artificial intelligence in shaping the global economic and political landscape. Cheema also highlights the opportunities and challenges presented by these technologies, particularly regarding financial inclusion, transparency, and national security. The conversation emphasizes the need for Pakistan to adapt and embrace technological innovation to improve its economic competitiveness and solve societal problems.

Digital Transformation in Pakistan: A Study Guide

Quiz

Instructions: Answer each question in 2-3 sentences.

1. What is the primary mental block that the speaker describes people having when learning to use technology like computers?
2. According to the speaker, why is the internet considered a basic human right and what implications does this have for Pakistan?
3. What is meant by Pakistan being a “green field” in terms of technology development? How does this contrast with “brown field” scenarios?
4. How can barcoding be beneficial to vendors in Pakistan, and why can’t they implement it themselves?
5. What is the speaker’s view on a cashless system, and why does she believe it is difficult to implement in Pakistan?
6. What are the main issues with the current charity system in Pakistan? How does the My Impact Meter app aim to solve them?
7. Besides creating viral content, what other methods can individuals use to earn from social media?
8. What are the key issues with the existing e-commerce system in Pakistan, particularly related to payment processing?
9. Why does the speaker argue that Pakistan should not delay introducing its own cryptocurrency?
10. What is the significance of Deep Seek and how has it impacted the artificial intelligence race?

Quiz – Answer Key

1. The primary mental block people have is a fear of technology, an initial feeling that it is too difficult to learn. This fear creates resistance, even if the technology is inherently simple.
2. The internet is a basic human right because it is now the backbone of the economy and daily life. This means internet access should be prioritized like healthcare or education and not subject to political interference.
3. Pakistan is a “green field” because much of the country lacks existing technology infrastructure. This means new tech can be implemented at a lower cost without the need to remove outdated systems, as opposed to “brown field” scenarios where upgrading is more costly and complex.
4. Barcoding can help vendors manage inventory and payments more efficiently, as well as make the shopping experience more seamless for customers. However, vendors need a company to develop an easy-to-use product for them.
5. The speaker supports a cashless system, believing it can document the economy and curb corruption. She indicates the general population isn’t ready for this change, preferring cash due to the informal economy and corruption in Pakistan.
6. The charity sector in Pakistan lacks transparency and visibility, often dominated by “professional mafias.” My Impact Meter aims to solve this by using tech to provide transparency and direct aid to verified recipients.
7. Besides creating viral content, individuals can earn from social media through affiliate marketing by reviewing or promoting other products and earning commission through these programs.
8. The main issues include a reliance on cash-on-delivery because of credit card restrictions and courier companies holding cash payments for extended periods. These problems hinder online businesses.
9. Pakistan should not delay introducing its own cryptocurrency because it is a way to decentralize and democratize the exchange of value, reducing reliance on traditional banks. Furthermore, she believes the country is behind in its embrace of this tech.
10. Deep Seek is significant because it is a Chinese AI development that caught up with the United States in the AI race despite a much smaller investment. It revealed how the U.S. investment into this technology has been more expensive, while simultaneously showing the importance of AI in world politics and the economy.

Essay Questions

Instructions: Develop a well-structured essay for each of the following prompts.

1. Discuss the importance of technological literacy in Pakistan, using examples from the text to illustrate the potential benefits and challenges of adoption.
2. Analyze the economic advantages of the digital transformation for a country like Pakistan. Make sure to focus on the country’s unique factors mentioned in the source, such as high mobile penetration and population density.
3. Evaluate the role of technology in addressing social issues like poverty and corruption in Pakistan, focusing on the ideas presented in the discussion of the My Impact Meter and cashless transactions.
4. Explore the challenges and opportunities for e-commerce growth in Pakistan, considering the discussion on payment methods, infrastructure limitations, and the potential for tech-driven solutions.
5. Critically assess the geopolitical implications of artificial intelligence and cryptocurrency as discussed in the conversation, paying particular attention to their potential effects on power dynamics and economic structures.

Glossary of Key Terms

• Bandwidth Penetration: The degree to which internet access is widespread and available within a given population or region.
• Barcode: A machine-readable representation of data, often used to identify products and facilitate inventory and sales management.
• Brown Field: A situation where an existing system or infrastructure is in place, making the introduction of new technology more complex and expensive due to the need to integrate with or replace the old.
• Cashless System: An economy or method of payment where transactions are done without the physical exchange of cash.
• Cryptocurrency: A digital or virtual currency secured by cryptography, designed to work as a medium of exchange using a technology called blockchain.
• Data Center: A facility used to house computer systems and associated components, such as telecommunications and storage systems, requiring robust energy and cooling systems.
• Deep Seek: In this context, refers to a Chinese AI company that, according to the interview, made a major advance in the development of AI.
• Decentralized Information: A system where data is not controlled or stored in one place but is spread across many locations, often used to increase transparency and avoid single points of failure.
• Frictionless: A term describing the ease of use and simplicity in a product, service, or technology, minimizing any barriers or difficulties for the user.
• Green Field: A situation where there is no existing system or infrastructure, making the introduction of new technology relatively easier and less expensive.
• GPU (Graphics Processing Unit): A specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display device. Essential for AI development.
• Impact Credit: A unit of value linked to the social impact or charitable contributions, used in programs to measure and quantify benefits. In this context, the program’s impact credits are backed by gold.
• Monetize: The process of converting something into money or making revenue from it, especially in digital and online platforms.
• Open Source: Software or code that is made freely available for use, modification, and redistribution, often fostering innovation through collaboration.
• Repatriation: The process of returning profits or capital to the home country of a business, often a key factor in international business and investment.
• Speed Money: Bribes or unofficial payments made to expedite a process or service, often associated with corruption.

Pakistan’s Technological Future: A Conversation with Kamal Cheema

Okay, here is a briefing document summarizing the key themes and ideas from the provided text:

Briefing Document: Analysis of Mub Shar Luqman Interview with Kamal Cheema

Date: October 26, 2023 (based on the content, but actual date unspecified)

Subject: Discussion on the role of technology and its potential impact on Pakistan, including digital adoption, financial systems, and AI.

Overview:

This discussion features a conversation between Mub Shar Luqman and IT expert Kamal Cheema. The conversation delves into the transformative power of technology, particularly in the context of Pakistan. Cheema argues that technology, especially the internet and digital solutions, is no longer a luxury but a fundamental right and an essential driver of economic growth. She also critiques Pakistan’s current approach, highlighting missed opportunities and the need for a paradigm shift toward embracing and leveraging technological advancements. The discussion covers digital adoption, the importance of internet infrastructure, the potential of blockchain and crypto, the impact of AI and recent developments like DeepSeek.

Key Themes and Ideas:

1. The Internet as a Basic Human Right and Economic Backbone:

• Cheema asserts that the internet should be considered a basic human right, akin to healthcare and education, and not subject to political interference.
• She emphasizes that the internet is the backbone of the economy, and its lack of consistent service harms all sectors, including businesses and the stock market.
• Quote: “the internet is now the backbone of your economy, it is the backbone of your life, as well as life… internet is now a basic human right”

1. Pakistan’s Technological Potential and Missed Opportunities:

• Pakistan has an advantage in the following areas:
• A young population (69% under 30 years old).
• High mobile phone penetration due to affordable options.
• High bandwidth penetration due to population density.
• A “green field” environment, allowing for new technology implementation without legacy infrastructure to remove.
• Cheema criticizes the slow adoption of tech like barcoding and cashless payment systems. She points out that vendors are held back because they lack easy access to digital technologies.

1. Frictionless Tech Adoption:

• The emphasis is placed on intuitive and easy-to-use technology, drawing a contrast with “frictional” systems.
• Cheema states that people are naturally receptive to tech that works seamlessly, citing the proliferation of smartphones as an example.
• Quote: “…ever since smartphones have come, people have started using friction, friction less, any thing that is frictional, which creates even the slightest difficulty for you…”

1. The Need for Innovative Solutions and Business Models:

• Cheema suggests the implementation of user-friendly barcoding systems and digital payment solutions for vendors, highlighting India as a good example of successful adoption of these systems.
• She stresses the need for businesses to create frictionless ways for people to use tech, like the My Impact Meter charity app, which, despite a good goal, has faced slow adoption.

1. Documented Economy and Transparency:

• Cheema argues that technology’s ability to document all transactions can help combat corruption by creating predictability and accountability.
• Quote: “This is a very beautiful advantage of technology that technology is very predictable…it makes things very repeatable, it makes things very predictable.” *The discussion highlights resistance to a documented economy as an obstacle for the adoption of new technologies.

1. The Importance of Fintech and Crypto:

• Cheema strongly advocates for Pakistan to adopt cryptocurrency, stating it will democratize the exchange of value by removing dependence on banks. She describes it as decentralizing the “trust system”.
• She critiques the traditional banking system, and argues that it’s built on lending leverage and distrust, and can be destabilized through bank runs.
• She points out that China and America are beginning to embrace crypto.
• Quote: “…crypto currencies are going to democratize the exchange of value… Right now we are fully dependent on banks.”
• Cheema recommends abolishing the 5000 rupee note to help reduce inflation, and suggests implementing a national crypto currency backed by the State Bank of Pakistan.

1. Social Media Monetization:

• Cheema discusses various ways to generate income through social media, such as creating viral content and affiliate marketing.
• She emphasizes that brands benefit from affiliate marketing because they gain access to sellers at a low cost.

1. The Impact of AI and Deep Seek:

• Cheema emphasizes the transformative potential of AI in all aspects of life, including war, politics and the economy.
• She explains that DeepSeek’s work is significant because they were able to replicate very complex AI models that were previously only possible for large, well-funded companies (such as Open AI). They did so with comparatively few resources and at very low cost.
• Cheema argues that Deep Seek’s work destabilized America’s perceived advantage in AI and highlighted a major weakness in their strategy.
• She points to a possible unintended consequences of AI use, including high water usage for data centers.
• Quote: “Artificial intelligence is such a thing that is the most important thing in humanity right now…the way we interact, the way we work, the way we play, the way we live, the way we learn, everything will be completely different because of AI.”

1. The Open Source Nature of Deep Seek:

• The open source nature of Deep Seek allows anyone to use it freely.
• She notes that this is a direct challenge to US companies that hoped to profit from similar AI models, making them less competitive.
• Government Regulation of Crypto:Cheema argues that by regulating crypto, the government can prevent its use in laundering money and funding terrorists by controlling the blockchain.

Conclusion:

The interview highlights both the significant potential and the challenges facing Pakistan in leveraging technology for economic and social development. Kamal Cheema’s message is clear: Pakistan needs to adopt a forward-thinking approach to technology, treating it as a basic right, an economic imperative, and a tool for greater transparency and accountability. The failure to do so will result in continued missed opportunities and a widening gap with more technologically advanced nations.

Technology’s Impact on Pakistan and Beyond

Frequently Asked Questions About Technology and its Impact

1. Why do some people have a mental block when it comes to using technology, and how can this be overcome? Some individuals, particularly older generations or those with limited exposure, develop a mental block towards technology, often stemming from fear of complexity or a lack of initial confidence. This can be overcome by emphasizing the intuitive design of modern devices and applications, demonstrating the simplicity of basic tasks, and providing patient, step-by-step guidance. Focusing on real-world applications and the benefits of technology can further motivate individuals to embrace it.
2. Why is reliable internet connectivity considered a basic human right, and what does this mean for a country’s development? Reliable internet connectivity is now considered a basic human right due to its critical role in various aspects of modern life, including education, healthcare, commerce, and access to information. A country’s development is heavily dependent on internet access as it serves as the backbone of the economy. Businesses, productivity, and the stock market all suffer if internet access is restricted. Treating the internet as a national security matter, rather than a political issue, is crucial for consistent and widespread access.
3. How can small business owners like fruit vendors and readymade garment sellers benefit from technology like barcoding and digital payments? While individual vendors might not directly implement sophisticated systems, companies can create user-friendly tools that allow vendors to generate barcodes for their products, track sales, and accept digital payments. Customers could then scan these barcodes to view prices and make cashless transactions. This streamlines the process and provides benefits of predictability and documentation. This can reduce the need for cash and document the economy in a way that can lead to reduced corruption.
4. What advantages does Pakistan have in adopting and implementing new technologies, and why is it considered a “greenfield” in this context? Pakistan has several advantages for technology adoption, including a large youth population, high mobile phone penetration, and high bandwidth penetration due to its population density. Additionally, Pakistan is considered a “greenfield” because it has fewer legacy technologies to replace, making it easier and more cost-effective to implement new solutions compared to developed countries.
5. How does the “My Impact Meter” app aim to address challenges in the charity sector, and why is transparency so crucial in this field? The “My Impact Meter” app seeks to bring transparency, visibility, and ease to the charity sector. By enabling donors to track exactly who receives aid, monitor their progress, and choose specific causes, the app aims to overcome issues like corruption and lack of accountability. Transparency is crucial in the philanthropic sector to ensure that donations reach intended recipients, building trust and maximizing impact. The app combats issues of encouraging child kidnapping by providing alternative routes of donation, in contrast to giving alms to street beggars.
6. How can ordinary individuals earn money using social media, and what is “affiliate marketing?” Individuals can earn money on social media through various methods such as creating engaging content and monetizing their channels or by doing affiliate marketing. Affiliate marketing involves promoting other companies’ products on your own social media channels and earning a commission for any sales generated through your unique link.
7. What are the major hurdles that Pakistani businesses face regarding online sales and e-commerce, and what solutions are being discussed? Pakistani businesses face challenges including difficulties with international online transactions because the State Bank doesn’t allow credit card payments and the issue of cash-on-delivery payments being held by courier companies for extended periods. Solutions such as establishing a Pakistani crypto currency, backed by the State Bank, can assist in bettering these types of issues. This type of national cryptocurrency could also aid in mitigating the issues of money laundering that have plagued the traditional financial systems.
8. What is DeepSeek, how did it impact the AI landscape, and what broader implications does it have for global politics? DeepSeek is a Chinese AI company that made significant advances in AI technology with only 6 million dollars, in comparison to the billions of dollars invested by other big tech companies. DeepSeek’s accomplishments have challenged America’s belief that it was winning the AI race and demonstrated that significant advancements are possible with fewer resources. It shows that a country can be more than competitive in AI and also challenges the concept of intellectual property rights. This breakthrough has shifted the geopolitical balance and highlights AI’s central role in the competition between superpowers. Furthermore, this has lead to a greater discussion about the energy needs and environmental costs of AI development, along with the need to make AI open source.

Social Media’s Impact: Promise and Peril

Social media has become an integral part of modern life, with various platforms offering different ways to connect and share information. Here’s a breakdown of how social media is discussed in the sources:

Social Media Platforms:

• The sources mention a variety of social media platforms, including TikTok, Facebook, Daily Motion, and Vio. There are also others like Sling.
• The rise of social media has provided new ways for people to gain fame, such as the methods used by girls on TikTok.

Using Social Media for Earning:

• One of the primary ways to earn through social media is by creating content. If your content is engaging and gains a lot of views, you can monetize your channels.
• Affiliate marketing is another method for earning from social media. This involves marketing other products, reviewing products, and earning money from those reviews. This can be done by including links to products on a website or social media page.
• Affiliate marketing is beneficial for both the brand and the seller. Brands can find sellers at a low cost, while the sellers can earn commission on sales.
• In Pakistan, affiliate marketing can be done with local brands if they have affiliate marketing programs.

Social Media and Business:

• The internet, including social media, is now considered the backbone of the economy and daily life. It impacts businesses, productivity, and the stock market.
• The internet is considered a basic human right, similar to health, education, clothes, and shelter.
• Social media is increasingly important for businesses and the economy, which is why issues such as the internet being shut down are of concern.
• Many businesses, including the taxi and hospitality industries, have been transformed by technology.
• Online businesses are becoming increasingly popular, but face challenges in Pakistan due to the State Bank not permitting credit card transactions. This leads to issues with cash-on-delivery payments and delays in receiving payments from courier companies.

Social Media and Charity:

• Social media can be used to increase transparency and ease in the charity sector.
• Apps can be developed where people can see exactly who the poor are, give rations against identification cards, and give vouchers instead of cash.
• Donors can also track the impact of their donations, such as attendance of children in school.
• Despite these tech-based solutions, people still often prefer giving directly to beggars, which can encourage negative activities such as child kidnapping.
• Technology can be used to create more efficient and transparent charitable systems by connecting benefits to identity card numbers to avoid double dipping.
• There are apps such as “My Impact Meter” that are designed to bring transparency to charitable giving.

Other points related to social media:

• Social media is a tool that can document everything, which can make corruption more difficult.
• The technology associated with social media makes things more predictable, repeatable, and the outcomes better.
• The continuous service of the internet and therefore access to social media should be considered a matter of national security.

The sources highlight both the potential benefits and challenges associated with social media. It is portrayed as a tool that can transform economies, streamline business, increase transparency in charity, and facilitate new avenues for earning, but also as something that needs to be approached with awareness of how it can be used both positively and negatively.

IT’s Transformative Impact Across Sectors

Based on the provided sources, here’s a discussion of IT applications, highlighting their impact across various sectors:

IT in Business and Economy

• The internet is considered the backbone of the economy and everyday life. It’s not just a helpful tool but a fundamental component for business, productivity, and stock markets.
• Connectivity is now regarded as a basic human right, similar to health, education, and shelter. This highlights the essential role of IT infrastructure in modern society.
• IT solutions are needed to support vendors, such as applications that generate unique codes like barcodes. These applications can help vendors manage their products and prices, which is particularly beneficial for small businesses.
• E-commerce and online businesses are becoming increasingly popular, but face challenges in Pakistan due to restrictions on credit card transactions. These restrictions lead to issues with cash-on-delivery payments, which can affect online businesses.
• Technology documents everything, making corruption more difficult. This suggests that IT can be used as a tool for transparency and accountability in various sectors.
• Technology makes processes more predictable and repeatable which leads to better outcomes.

IT in Charity and Philanthropy

• IT can transform the social philanthropic sector by increasing transparency and visibility.
• Apps can be used to track donations, ensure they reach the intended recipients, and monitor the impact of charity. For example, apps can provide detailed information on who receives aid, what they receive, and even track the attendance of children in school.
• Digital platforms can also help reduce friction in the donation process and improve overall efficiency in the charity sector.
• IT can address issues of double-dipping by associating benefits with identity card numbers. This approach ensures that aid is distributed equitably and prevents the same individuals from receiving benefits multiple times.
• Examples include apps that allow donors to give rations or vouchers directly to those in need, monitor the use of funds, and access real-time data. An example of this is the app called “My Impact Meter”.
• There is also a service called “Doctor on Call”, which issues smart cards with patient’s medical information for easy access by medical professionals.

IT and Finance

• The sources discuss the idea of introducing a cryptocurrency backed by the State Bank of Pakistan. This is seen as a way to combat inflation and move away from traditional banking systems.
• Cryptocurrencies are presented as a means to democratize the exchange of value by decentralizing the trust system which is traditionally held by banks.
• The technology behind crypto, called blockchain, records all transactions and makes the system more secure and transparent.
• The development of crypto-based solutions are seen as a way of moving away from the current dependency on banks and traditional financial systems.

IT and Artificial Intelligence

• Artificial intelligence (AI) is considered a transformative technology that will change how we interact, work, play, and learn.
• AI has the potential to affect various sectors, including war and politics.
• The development of AI technologies is viewed as a race between global powers, with economic and political superiority at stake.
• The use of GPUs is vital for developing AI. The sale and use of this technology are controlled and restricted in many places.
• The source highlights the impact of an AI company called Deep Seek, which made significant advancements in AI for a fraction of the cost of the technology in the west.
• Data centers are a very energy-intensive component of IT infrastructure. This includes the energy needed for computing and cooling.

IT in General

• IT is intuitive and designed for easy use, with companies focusing on friction-less products.
• There is a need for a shift in thinking regarding the internet’s role, emphasizing its importance as a basic human right rather than a political issue.
• Pakistan has a high mobile phone penetration and bandwidth, which is a major advantage.
• Pakistan is also a “green field,” which means that technology can be implemented more easily and at a lower cost.

In summary, the sources portray IT as a powerful tool with wide-ranging applications, from streamlining business operations to revolutionizing charity and finance. IT has the potential to transform societies by making processes more efficient, transparent, and predictable. It also has the power to become the core of economic and political power.

Online Business in Pakistan: Challenges and Opportunities

Online business is discussed in the sources as a growing sector with significant potential, but also facing specific challenges, particularly in Pakistan. Here’s a breakdown of the key points:

Growth and Importance

• Online business is becoming increasingly popular, reflecting a global shift towards e-commerce. The internet and digital technologies are now seen as the backbone of the economy and daily life.
• The shift to online platforms has been so significant that it has transformed major industries, including taxi services and hospitality. These companies have become global leaders even without owning physical assets, highlighting the transformative power of technology.
• The sources mention that the internet, which underpins online business, is now considered a basic human right, similar to health, education, clothes, and shelter. This underscores the essential role of online access for modern life and commerce.

Challenges in Pakistan

• A major challenge for online businesses in Pakistan is that the State Bank does not permit credit card transactions. This forces many businesses to rely on cash-on-delivery (COD) payments.
• COD payments result in a significant issue: courier companies often hold onto the cash for extended periods (a month or more) before paying the business. This creates cash flow problems for online businesses and is a common complaint from sellers.
• The courier companies may take a percentage of the payment, as much as 30%, and charge interest on the amount. This practice further erodes the profits of online businesses.
• These issues, driven by government policy and the monopoly of courier companies, are causing the failure of many online businesses in Pakistan.

Opportunities and Solutions

• Despite these challenges, Pakistan has a high mobile phone penetration and bandwidth, making it a suitable environment for online businesses.
• Pakistan is considered a “green field” with many areas where technology is not yet fully implemented. This presents opportunities to introduce new and cost-effective tech solutions.
• The source suggests that solutions should be adopted which are easy and frictionless for people to use.
• The sources suggest that IT and technology can document every transaction, which makes corruption more difficult.

Impact on the Economy

• The development of online businesses is closely tied to the overall economic health of the country. The internet’s role is essential to the economy, affecting productivity, the stock market, and various businesses.
• The source notes that even businesses beyond the IT sector, such as fruit and garment vendors, could benefit from IT applications, such as barcoding. However, they will need apps that are easily adopted to facilitate this.
• The sources also discuss the potential of cryptocurrencies to bypass current financial restrictions and provide a more democratic and decentralized system for financial transactions.

In conclusion, online businesses are a vital component of the modern economy, and they offer significant opportunities for growth and development, particularly in countries like Pakistan. However, there are significant hurdles to overcome, particularly regarding financial transactions and the need for policies that support the growth of online businesses. The sources suggest that a more robust and streamlined online business ecosystem can benefit from the use of IT and the development of more appropriate financial structures.

Cryptocurrency: Potential, Challenges, and Pakistan’s Role

Based on the provided sources, here’s a discussion of cryptocurrency, highlighting its potential and challenges:

Core Concepts

• Cryptocurrency is a way to democratize the exchange of value by decentralizing the trust system that is currently managed by banks.
• Instead of relying on a central authority like a bank, cryptocurrency distributes the trust system across many points globally.
• Blockchain technology is fundamental to cryptocurrencies. It records all transactions in a secure, unchangeable chain, enhancing transparency and security.
• The transactions recorded on the blockchain are immutable, and this is part of what provides crypto with credibility and integrity.

Traditional Banking vs. Cryptocurrency

• Traditional banks act as a third party between individuals who don’t trust each other. Banks hold money, lend it out, and charge interest.
• Cryptocurrency aims to eliminate this third party, making transactions more direct and reducing dependency on banks.
• The sources indicate that banks operate on a system of fractional reserve banking, in which they lend out more money than they have on deposit. They also swap credits which is one of the ways that banks profit, but that can also lead to bankruptcy.
• The banking system is described as a “mafia” that profits from interest and fees.
• The source states that critics of crypto say it lacks an asset on which its value is based, unlike traditional currency which has been based on gold or is guaranteed by the government.

Potential Benefits

• Cryptocurrency can address the challenges of inflation. The sources suggests that the current monetary system is based on high interest rates that are maintained to protect the credibility of the currency. Crypto, as a decentralized system, may offer an alternative.
• Cryptocurrency can democratize the exchange of value, making it more accessible to the common person.
• Cryptocurrency can promote transparency through blockchain technology, since all transactions are recorded and cannot be altered.
• The sources suggest that crypto could circumvent issues related to the fact that the State Bank of Pakistan does not permit credit card transactions.
• The source claims that crypto can also reduce corruption by making transactions fully transparent.

Challenges and Criticisms

• The value of cryptocurrencies is based on supply and demand, rather than being pegged to an underlying asset like gold. This makes their value volatile.
• There is a risk of a “bank run” where everyone withdraws their money at the same time, which can also happen in traditional banks.
• The source mentions concerns that cryptocurrency is used for money laundering and funding terrorism.

Global Adoption

• China has started a crypto yuan, backed by the State Bank of China, recognizing the potential of cryptocurrency.
• The United States has also started to explore cryptocurrency.

Pakistan and Cryptocurrency

• The source suggests that Pakistan should introduce its own cryptocurrency, backed by the State Bank of Pakistan.
• The source states that the longer Pakistan delays introducing its own cryptocurrency, the further they will fall behind.
• The source implies that regulating crypto is a way to combat terrorism and to ensure that terrorists do not have access to funding through unregulated crypto.

Impact Credit

• One example of a crypto-like currency is an “impact credit,” which is backed by gold and tied to a proof of donation, as used by the “My Impact Meter” app.

In summary, the sources portray cryptocurrency as a transformative technology with the potential to disrupt traditional financial systems, increase transparency, and democratize financial transactions. However, it also poses challenges related to volatility, security, and potential misuse. The source suggests that Pakistan should embrace cryptocurrency to solve existing financial problems and to avoid falling behind.

The AI Race: Deep Seek and Geopolitical Implications

Based on the provided sources, here’s a discussion of Artificial Intelligence (AI), highlighting its transformative potential, current geopolitical implications, and challenges:

Transformative Potential of AI

• AI is considered the most important development in humanity right now.
• It is expected to completely transform how we interact, work, play, live, and learn.
• AI is also expected to drastically change how wars are conducted and how politics is done.
• The source indicates that AI is a “race” between major superpowers, with the winner gaining significant advantages in world politics and the economy.

The AI Race

• The AI race was initially thought to be led by the United States, which controlled the supply of crucial components like GPUs (Graphics Processing Units).
• GPUs are considered the “bricks” used to build AI systems.
• The US restricted the sale of GPUs to countries like China and Pakistan, aiming to maintain its lead in AI development.

Deep Seek and the Shift in the AI Landscape

• A Chinese company called Deep Seek has emerged as a major disruptor in the AI race.
• Deep Seek achieved a breakthrough in AI development by spending only $6 million, whereas US companies spent billions of dollars.
• Deep Seek’s accomplishment has been described as “mind blowing,” demonstrating that substantial progress in AI can be made with far fewer resources than previously thought.
• Deep Seek is said to have “stolen” technology or “chips” or used “copyright violation or plagiarism” to achieve this breakthrough.

Impact of Deep Seek

• Deep Seek’s success has caused a major shift in the AI landscape, demonstrating that China is a serious competitor.
• The success of Deep Seek caused the stock of an Indian company to fall by 593 billion dollars overnight.
• Deep Seek’s move to make its technology open source is considered a further blow to US Big Tech companies.
• Open-source AI means that anyone can use, modify, and build upon their technology, eliminating a key advantage of the US companies.

Challenges and Considerations

• Data centers, which are crucial for AI development, are highly energy-intensive and consume a lot of water.
• The source states that energy and water consumption are major considerations when building data centers.
• The high energy consumption is why the fact that Deep Seek created a data center and AI using less energy was so significant.
• The source suggests that AI is not just about technology, but also about resource management.
• The source suggests that AI is a rapidly developing field, with significant changes and breakthroughs happening very quickly.
• The source does not explicitly state that AI has a potential for misuse, but the source does suggest that like crypto currency, it can be used for good or for ill.

Geopolitical Implications

• The source indicates that the development and control of AI technology have significant geopolitical implications, with the potential to reshape global power dynamics.
• The US has taken measures to try to maintain its dominance in the field by restricting the sale of components needed for AI development.
• The source suggests that China is now a major competitor in the AI race, through the success of Deep Seek.
• The source does not specify the effect that AI will have on global politics other than stating it will change how wars are conducted, and how politics is done, nor does it provide any explanation about how it will change it.

Overall Impact

• The source implies that AI has the potential to bring about significant progress, but also presents challenges related to resource consumption and power dynamics.
• The sources suggest that nations need to be aware of how quickly technology is developing and they must be willing to make bold changes to keep up.

In summary, AI is portrayed as a revolutionary technology that is poised to transform many aspects of human life, and there is currently an active competition for its development and control. The recent developments by Deep Seek are particularly significant, as they highlight that rapid, impactful developments in AI can come from unexpected sources and with fewer resources. The source implies that governments need to be agile and willing to adapt to new developments in order to stay competitive in the AI race.

By Amjad Izhar
Contact: amjad.izhar@gmail.com
https://amjadizhar.blog

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