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Pakistan’s SBP Act Amendments: A Big Step for Crypto Regulation

The Pakistani government is pushing for key amendments to the State Bank of Pakistan (SBP) Act to regulate digital currencies and modernize financial policies. These changes will allow the SBP to issue digital currencies, manage both physical and digital money, and enhance financial innovation.

Key Amendments & Their Impact

1. SBP’s Role in Digital Currency

The SBP will have the authority to issue and regulate digital currencies.

Legal provisions will be introduced for digital currency issuance for the first time.

Unauthorized issuance of digital currencies will carry penalties.

2. New Digital Payment Subsidiary

The SBP will launch a subsidiary to boost digital payment systems.

This aims to improve financial accessibility and promote innovation.

3. Lifting the Dual Nationality Ban

Dual nationals will be allowed to hold top positions in the SBP (governor, deputy governors, and board members).

This change seeks to attract diverse expertise and leadership.

4. Improved SBP Governance

The SBP board will get more control over financial report approvals.

Clearer guidelines for board meetings will enhance decision-making.

These amendments mark a shift from Pakistan’s earlier stance on cryptocurrencies, setting the stage for a structured regulatory framework that could drive financial growth and digital innovation.