Pakistan is making significant strides in the digital economy by announcing plans to introduce its digital currency, similar to cryptocurrencies such as Bitcoin. This move represents a progressive step towards embracing the advancements of the digital age. Read more.
The decision to develop a digital currency comes as Pakistan recognizes the growing importance of this technological trend and aims to replace physical currency with a more efficient and secure digital alternative.
Economic experts have underlined the significance of this development, emphasizing the potential benefits it can bring to the country’s economic landscape.
Shoukat Bizinjo, the Additional Director of the Digital Financial Services Group at the State Bank of Pakistan (SBP), recently addressed the International Conference on Mobile Commerce 2023, shedding light on the country’s plans. He revealed that Pakistan’s central bank is actively exploring the concept of callable bull/bear contracts (CBBCs) as a potential pathway to launch digital currencies.
CBBCs are structured investment products that replicate the performance of underlying assets, enabling investors to participate in their value without bearing the entire ownership cost. The SBP is currently engaged in discussions and consultations with other central banks to gather insights and expertise in this field.
Bizinjo also disclosed that the state bank is in talks with influential regional business leaders to facilitate the implementation of digital currency within the country. Furthermore, he highlighted the progress made by Electronic Money Institutions (EMIs) in e-banking.
EMIs have successfully introduced e-money wallets for customers and businesses and various digital payment tools like prepaid cards and contactless payment options.
As the digital currency initiative gains momentum, the SBP has taken a proactive approach by engaging with 12 EMIs in various stages of acquiring licenses from the central bank. This collaboration aims to foster an ecosystem conducive to successfully implementing digital money in Pakistan.
By venturing into digital currency, Pakistan is poised to leverage the benefits of increased financial inclusion, improved efficiency, and enhanced security. The introduction of its digital currency reflects the country’s commitment to embracing innovative technologies and staying at the forefront of digital change in the global economic landscape.