Pakistan’s central bank, the State Bank of Pakistan (SBP), is planning to introduce its own digital currency in the future. This development is seen as a significant step for Digital Pakistan, as it aims to make progress in digital banking. However, the adoption of digital currency requires strict regulations.
The introduction of digital currency in Pakistan will replace physical currency and result in cost savings for financial transactions. It will also have an impact on the movement of capital in society.
Shoukat Bizinjo, the Additional Director of the State Bank’s Digital Financial Services Group, recently mentioned that several central banks, including the SBP, are exploring the use of callable bull/bear contracts (CBBCs) as a potential approach for launching digital currencies.
During the International Conference on Mobile Commerce 2023, Bizinjo stated that the SBP is currently reviewing CBBCs and consulting with other banks regarding digital currency.
Bizinjo also highlighted the progress made by Electronic Money Institutions in Pakistan. These institutions have launched e-money wallets for consumers and merchants, as well as other digital payment instruments such as prepaid cards and contactless payment options.
According to SBP officials, Pakistan currently has four active commercial Electronic Money Institutions: NayaPak, Finja, CMPECC, and Sada Tech Pakistan. These institutions manage a significant e-money balance of Rs2 billion and serve 1.6 million e-money wallets.
