SBP set to launch Pakistan's first digital currency
The State Bank of Pakistan (SBP) is preparing to initiate a
pilot launch of Pakistan's first digital currency in the coming months.
According to Sima Kamil, Deputy Governor of the SBP, the central
bank of Pakistan plans to commence the pilot launch within two months.
Kamil mentioned that the sandbox, a controlled environment provided
for testing innovative products, services, or business models, will be launched
within a month or two. This step will enable the testing of the digital
currency in a limited and supervised manner.
The introduction of the digital currency aligns with the SBP's
five-year strategy, known as "SBP Vision 2028," according to Kamil.
While the banking regulator has previously been hesitant to
legalize crypto
currencies, they have now proposed the concept of introducing
their own digital currency. Deputy Governor Kamil clarified that Central Bank
Digital Currencies (CBDCs) are distinct from cryptocurrencies.
CBDCs are designed to be more secure than cryptocurrencies and
are intended to complement existing physical cash and traditional forms of
electronic money. These currencies are built on blockchain technology (DLT) and
aim to provide a secure and efficient means of conducting digital transactions.
A few countries, including Nigeria, Jamaica, and the Bahamas,
have already launched their CBDCs, as reported by the Atlantic Council CBDC
tracker. Meanwhile, other nations such as China, India, Saudi Arabia, France,
Ghana, Canada, and Uruguay have initiated pilot programs to explore the implementation
of CBDCs.