The State Bank of Pakistan is preparing to launch a digital currency pilot and complete the legal framework for managing digital assets.
The process of financial system innovation in Pakistan is being implemented with the goal of enhancing the management capability of digital currency while establishing an independent agency to oversee the digital currency sector according to the newly enacted law.
MAIN CONTENT
Pakistan is preparing to launch a digital currency pilot led by the Central Bank.
The Digital Asset Management Law 2025 has been approved, creating a legal foundation for the digital currency sector.
The government establishes an independent agency to oversee and regulate the digital currency market.
How is Pakistan preparing to pilot digital currency?
The State Bank of Pakistan (SBP) is in the final stages of preparations to release a pilot central bank digital currency (CBDC) to modernize the national financial system. Mr. Jameel Ahmad, Governor of the SBP, announced this plan at the Reuters NEXT Asia Conference in 2024, affirming that the central bank is actively enhancing its digital currency management capabilities and will soon implement the pilot.
“We are focusing on building a digital currency ecosystem, viewing it as a great opportunity as well as a challenge that needs to be closely controlled.”
Jameel Ahmad, Governor of the State Bank of Pakistan, 9/2024
Mr. Ahmad also shared that modernization measures will help Pakistan enhance the effectiveness of its monetary policy and improve the digital infrastructure in the financial sector.
What role does the Digital Asset Management Law 2025 play in Pakistan's financial sector?
The Parliament of Pakistan has officially approved the Digital Asset Management Law 2025, marking an important step in establishing a legal framework to regulate and license operations for businesses related to digital currency. This law is considered pioneering in the South Asian region in balancing risk management with technological development.
“The act will provide a solid foundation for transparent management of the digital asset industry, contributing to consumer protection and preventing fraudulent activities.”
Minister of Blockchain and Digital Currency of Pakistan, 7/2024
The law also establishes an independent agency responsible for monitoring the market, enhancing enforcement capabilities of regulations in the DeFi sector.
How has the government of Pakistan structured the management of digital currency?
To effectively manage the digital currency market, Pakistan has established an independent regulatory agency responsible for licensing, oversight, and setting safety standards for digital currency businesses. This is a strategic move to protect users, minimize financial safety risks, and create a transparent investment environment with clear legal frameworks.
Collaborating with carefully selected technology partners also helps ensure the stability of this new digital ecosystem.
What monetary policy challenges do Pakistan and other South Asian countries face?
At the conference, Mr. Jameel Ahmad discussed with the Governor of the Central Bank of Sri Lanka the challenges in monetary policy in the South Asian region when applying digital currency. Both agreed that building a flexible legal framework and controlling risks is key for sustainable development.
International collaboration will help Pakistan shorten the time to complete solutions while learning from markets that have successfully implemented central bank digital currencies.
Real-world examples of digital currency implementation in South Asia
Sri Lanka recently successfully tested a central bank digital currency in 2023, aiming to enhance cashless payments and reduce banking transaction costs. This experience is an important reference for Pakistan as it builds its legal corridor and implements similar pilots.
A comparison table of the progress of digital currency development in South Asia
Country | Pilot Phase | Management Law | Regulatory Agency | Pakistan | Preparing for Pilot (2024) | Digital Asset Management Law 2025 | Newly Established Independent Agency | Sri Lanka | Successful Pilot (2023) | Regulated under current banking law | Central Bank of Sri Lanka
Frequently Asked Questions
When will the State Bank of Pakistan experiment with digital currency? The SBP will conduct a CBDC pilot in 2024, based on a plan announced at the Reuters NEXT Asia Conference. What impact does the Digital Asset Management Law 2025 have? This law establishes the first legal framework for digital currency in Pakistan, creating a licensing and safety oversight foundation. How does the digital currency regulatory agency in Pakistan operate? The newly established independent agency will enforce controls, licensing, and protect the rights of digital currency users. Where does Pakistan learn from to develop digital currency? Pakistan refers to the successful pilot model of Sri Lanka and collaborates with international technology partners. How does digital currency benefit Pakistan's financial system? Digital currency helps modernize, enhance the effectiveness of monetary policy, and expand access to digital finance.
Source: https://tintucbitcoin.com/ngan-hang-pakistan-ra-mat-tien-so-thu-nghiem/
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