Pakistan is set to take a major step toward digital finance, as the State Bank of Pakistan (SBP) partners with Japanese blockchain technology company Soramitsu to launch a pilot program for a central bank digital currency (CBDC) later this year. The initiative was first reported by Nikkei Asia.
The pilot will run on Soramitsu's CBDC platform and is being funded by Japan's Ministry of Economy, Trade and Industry under its Global South Future-Oriented Co-Creation Project. The aim is to explore how a digital version of the Pakistani rupee could improve payment systems, financial inclusion, and overall economic efficiency.
SBP Governor Jameel Ahmad, speaking last month, confirmed that the central bank is "building up our capacity" for launching a digital currency. According to economic experts, this move could be particularly impactful in Pakistan, where large segments of the population remain excluded from the banking system.
Masato Toriya, an associate professor at Tokyo University of Foreign Studies, highlighted that much of rural Pakistan still relies heavily on cash, with low rates of bank account ownership. The introduction of a CBDC, he said, could help reduce the high costs and logistical challenges of distributing cash, especially in remote areas.Soramitsu brings significant experience to the table, having implemented Cambodia's Bakong digital currency in partnership with the National Bank of Cambodia. The company has also conducted CBDC pilots in Papua New Guinea and the Solomon Islands. In January, representatives from SBP and Soramitsu visited Cambodia's central bank to study its digital currency system, ahead of finalizing their own collaboration.
With a population of 250 million and a GDP of about $400 billion-eight times larger than Cambodia's-Pakistan represents Soramitsu's most ambitious CBDC undertaking so far.
Disclaimer: This information is based on official
Announcement: we are not responsible for the accuracy, timelines, or implementation of the Digital Rupee project.