Pakistan moves to introduce own digital currency like Bitcoin

KARACHI – Pakistan’s central bank is moving to roll out its own digital currency in the future amid making impressive gains in digital banking.

The launch of digital currency represents a major advancement in another step for Digital Pakistan, however, its adoption needs strict regulations.

Digital currency in Pakistan will interrupt physical currency, cut the cost of financial dealings, and will change the flow of capital in society.

Lately, Shoukat Bizinjo, Additional Director of the State Bank’s Digital Financial Services Group, said several central banks, including SBP are exploring the concept of CBBCs (callable bull/bear contracts) as a potential avenue for launching digital currencies.

Addressing International Conference on Mobile Commerce 2023, Bizinjo said SBP is reviewing and consulting with other banks regarding CBBCs and digital currency.

He linked Electronic Money Institutions with notable progress in e-banking through the launch of e-money wallets for consumers and merchants, and other digital payment instruments such as prepaid cards and contactless payment instruments.

SBP officials said Pakistan has four live commercial Electronic Money Institutions, including NayaPak, Finja, CMPECC, and Sada Tech Pakistan, which have considerable e-money balance of Rs2 billion, managing 1.6 million e-money wallets.