Pakistan Plans to Launch a Currency like Bitcoin

The State Bank of Pakistan (SBP) has unveiled its plan to create adigital currency resembling bitcoin, marking its entry into the global trend of Central Bank Digital Currencies (CBDCs). Pakistan aims to launch this digital currency as a replacement for physical cash, intending to disrupt the use of tangible currency, decrease transaction costs, and transform capital circulation.

Shoukat Bizinjo, the Additional Director of the Digital Financial Services Group at the SBP, recently indicated that Pakistan is considering callable bull/bear contracts (CBBCs) as a potential method for introducing digital currencies. Speaking at the International Conference on Mobile Commerce 2023, Bizinjo revealed that the SBP is in ongoing consultations with other central banks on CBBCs and CBDCs.

Bizinjo also mentioned that the SBP is in talks with local business leaders about the introduction of digital currency in Pakistan. He pointed out the strides made in e-banking by Electronic Money Institutions (EMIs), including e-money wallets, prepaid cards, and contactless payments. He further noted that 12 EMIs are currently in the process of obtaining licenses from the central bank.