The State Bank of Pakistan (SBP), the nation’s central bank, declared that it is now putting the finishing touches on a strategy to begin producing digital currency in 2025.
According to reports from local news media DAWN, SBP Deputy Governor Jameel Ahmad stated that the SBP is now working on producing the CBDC by 2025 to enhance financial inclusion and minimize inefficiencies and corruption.
Ahmad added that the Central Bank is prepared to adapt to changing conditions in the digital ecosystem and be fully digitized and technologically prepared by 2030.
While plans to issue a Central Bank Digital Currency (CBDC) are being finalized, Pakistan’s Finance Minister, Asad Umar, has advised the Central Bank and the Federal Investigation Agency (FIA) to maintain top-tier cybersecurity in the financial sector in order to disseminate the growing benefits of digitization to the populace.
Umar also stated that the transformation of Pakistan into a digitally prepared economy is the beginning of an economic revolution in the country, thus he is pleased that the SBP has taken the proper move by promising to issue a CBDC.
The Minister claimed that the government is working to change Pakistan by making information technology (IT) a major driver of the national economy and job creation.
As the digital industry continues to expand globally, Pakistan’s President, Arif Alvi urged for increased training in blockchain, cybersecurity, and artificial intelligence while speaking with a group of blockchain technology workers in January.
CBDC Gaining Acceptance by Different Governments
The use of CBDC as a payment instrument similar to Fiat currency has gained popularity and acceptability by various countries as the crypto industry has grown.
For instance, India announced that it would begin the test of the pilot phase of the use of the digital rupee to make retail transactions in December.
According to India’s Central Bank, the pilot phase would take place in a few chosen places with a limited number of users and traders and the e-rupee will be delivered through local banks acting as middlemen.
India’s Central Bank also made mentioned that the e-rupee would have similar denominations as the country’s Fiat money.
In Europe, the European Union has also begun developing the use of a CBDC across the continent even though there are concerns that consumers may not fully key into the use of CBDC and there may be limitations when transacting with the CBDC.
