Pakistan's Leap into the Digital Finance Era: Launching a Central Bank Digital Currency

In a move set to modernize its financial landscape, Pakistan's central bank is on the verge of launching a pilot program for a digital currency while also outlining legislation for virtual assets, Governor Jameel Ahmad announced. This decision aligns with global trends as countries like China and India push forward with their own digital currency projects.

Speaking at the Reuters NEXT Asia summit in Singapore, Ahmad detailed Pakistan's proactive measures to develop a central bank digital currency. He shared insights on monetary policy with Sri Lanka's central bank governor, emphasizing the importance of strategic engagement with tech partners and establishing a robust regulatory framework through new legislation.

The government's efforts to embrace virtual assets include the formation of the Pakistan Crypto Council, collaboration with strategic advisors, and dialogues with U.S.-based crypto entities. As security and opportunity balance in the sector, Pakistan aims for careful risk management without missing growth potential. This digital shift aims to stabilize inflation and drive financial system modernization.

(With inputs from agencies.)