Having its own CBDC (Central Bank Digital Currency) would offer several advantages to Pakistan, including streamlined digital payments, easier remittances, improved efficiency, and enhanced security.
State Bank of Pakistan (SBP) Governor Jameel Ahmad informed the Senate’s Standing Committee on Finance and Revenue that the central bank is actively working on developing Pakistan’s inaugural digital currency, known as the Central Bank Digital Currency (CBDC).
During the meeting chaired by Senator Saleem Mandviwalla at the Parliament House, Governor Jameel Ahmad discussed how central banks worldwide have been launching their digital currencies on a trial basis. He emphasized that the SBP aims to learn from their experiences.
Governor Ahmad mentioned that the State Bank is presently engrossed in reviewing and comprehending the efforts of other central banks that have successfully established their own digital currencies. Moreover, he stated that the SBP will exercise caution in the launch of its CBDC.
Currently, more than a dozen countries have their own CBDCs, with over 100 countries contemplating the launch of their own. The introduction of a CBDC can provide numerous benefits to Pakistan, including reduced costs, enhanced efficiency, transparency, simplified digital payments, and remittances.
During the meeting, Senator Saleem Mandviwalla highlighted how the State Bank previously opposed digital banking but is now expediting the issuance of digital banking licenses. This indicated a shift in the regulators’ stance towards newer technologies, including cryptocurrencies. He stated that while the world is progressing, Pakistan is seemingly moving in the opposite direction.
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