After the popularity of blockchain and cryptocurrency around the globe, It is worth noting that several countries around the world including Pakistan have been exploring the idea of creating their own digital currencies.
What are Central Bank Digital Currencies (CBDC)
A central bank digital currency (CBDC) is a digital form of government-issued currency that is not pegged to a physical commodity.
They are issued by central banks whose role is to support the financial services of the national government and its commercial banking system, set monetary policy, and issue currency.
Often referred to as central bank digital currencies (CBDCs), these digital currencies are designed to provide a safe and efficient means of financial transactions.
While some countries have already launched or are developing CBDCs, the specific plans and timelines for a potential rollout in Pakistan are currently unknown.
Views of the Pakistan Government on Digital Currency
The Pakistani government’s views on digital currencies have been a topic of interest and discussion in recent years.
As the world embraces digital transactions and cryptocurrencies gain popularity, it is crucial to understand the stance governments, including Pakistan, are taking on this emerging form of money.
The Pakistani government is cautiously optimistic about digital currencies.
In 2018, the State Bank of Pakistan issued a statement highlighting the potential benefits and risks associated with cryptocurrencies.
While acknowledging its potential to facilitate cross-border transactions and financial inclusion, the government has also raised concerns about money laundering, terrorist financing, and consumer protection.
Since then, there have been ongoing discussions within various government agencies regarding the regulation and adoption of digital currencies in Pakistan.
The government emphasized the need for a robust regulatory framework to address potential risks while harnessing the transformative power of digital currencies.
Recent Work of Pakistan on Central Bank Digital Currencies (CBDC)
Additionally, in recent years, there have been efforts to explore central bank digital currencies (CBDCs) as viable alternatives to traditional fiat currencies.
The State Bank of Pakistan has launched a research and development project to assess the feasibility and impact of introducing a CBDC in the country.
Overall, while acknowledging the potential benefits of digital currencies, including greater financial inclusion and transaction efficiency, the Pakistani government is clearly taking a cautious approach to its adoption.
Striking a balance between embracing innovation and guarding against potential risks remains a top priority for policymakers as they navigate this changing landscape.
As of now, there is no official information on the launch of a digital currency in Pakistan but on 9th July 2023 state bank of Pakistan announced to launch of Pakistan’s state-owned digital currency soon.
It is recommended to keep an eye on official announcements from relevant departments for any developments in this field.