Pakistan is actively working on launching its own Central Bank Digital Currency (CBDC), with the State Bank of Pakistan (SBP) confirming a pilot launch plan. Here's what we know so far ¹ ² ³:

- *Launch Timeline*: The SBP aims to launch the CBDC pilot within the current fiscal year, potentially in the next few months. In July 2023, SBP's deputy governor mentioned that the pilot could be rolled out within two months after completing the groundwork.

- *Regulatory Framework*: The SBP has introduced new laws for Electronic Money Institutions (EMIs) to ensure the timely issuance of CBDC. The regulatory framework will focus on preventing money laundering, terror financing, and consumer protection.

- *Potential Benefits*: A CBDC could revolutionize Pakistan's financial landscape by enhancing monetary control, improving financial inclusion, and stimulating economic growth. It may also reduce cash dependency and increase access to formal banking services.

- *Challenges*: Despite the potential benefits, there are concerns about data protection, cybersecurity, and the impact on traditional banks. The SBP will need to address these challenges while implementing the CBDC.

- *Collaboration with China*: Interestingly, China has expressed interest in investing in Pakistan's agricultural sector, and there's speculation about potential collaboration in the digital currency space.

*Key Features of Pakistan's CBDC:*

- *Digital Version of Fiat Currency*: The CBDC will be a digital version of the Pakistani rupee, backed and regulated by the SBP.

- *Blockchain Technology*: The CBDC may utilize blockchain technology to ensure secure and efficient transactions.

- *Financial Inclusion*: The CBDC aims to increase access to financial services for underserved populations, including the estimated 100 million adults without traditional bank accounts ⁴ ³ ⁵.