- Pakistan plans to introduce digital currency to boost the national economy and regulate illicit financial activities.
- The State Bank of Pakistan is spearheading this initiative, establishing a dedicated department.
- It will operate alongside physical currency, promoting cross-border trade and financial inclusion.
The federal government of Pakistan is set to introduce digital currency to strengthen the national currency, curb the black money flow, and enhance financial transactions. The State Bank of Pakistan (SBP) is collaborating with experts to develop this initiative, establishing a dedicated department called Central Bank Digital Currency for its management.
This will serve as a legal tender similar to paper currency and will be backed by the central bank’s guarantee. Each unit of the it will be equivalent in value to one Pakistani Rupee, contributing to the appreciation of the national currency.
The government plans to gradually implement on it alongside physical currency, with an 80:20 ratio. This move is expected to facilitate cross-border trade, attract investments, and provide financial services to unbanked individuals.