The State Bank of Pakistan has established a legislative framework to acknowledge digital assets, such as cryptocurrencies, as legitimate forms of money.
The initiative, if accepted, would enable the SBP to launch a digital currency, which could eventually lead to Pakistan’s central bank issuing a digital currency.
According to the Tribune, the SBP suggested changes to the State Bank of Pakistan Act, indicating a change in the nation’s stance on digital currencies.
In contrast to the SBP’s earlier cautions against virtual currencies, the plan would allow digital currencies like Bitcoin to be utilized as legal money.
As stated by the Tribune, a currency’s legal tender status in Pakistan indicates that it can be used to pay for debts, products, and services.
SBP’s Oversight
A mechanism for punishing unlicensed digital currency issuers is also described in the proposal. The plan will allow the SBP to supervise digital and physical currency by incorporating digital currency management into its duties.
Furthermore, the framework would reverse a provision that formerly limited dual nationals’ ability to hold senior posts inside the central bank.
This change aligns with the government’s overarching economic goals, which include attempts to modernize Pakistan’s banking sector as the globe progressively shifts to digital finance and GDP growth estimates of 2.5–3.5%.
