By suggesting changes to legalize cryptocurrencies and encourage the establishment of a central bank digital currency (CBDC), Pakistan has paved the way for a significant change in its financial policy. On November 4th, the State Bank of Pakistan (SBP) announced several policy adjustments aimed at integrating digital assets into the nation’s financial system.
A government-backed digital rupee may be possible as a result of the proposed modifications, which give the SBP the power to issue and oversee digital currency. These modifications, if accepted, would make cryptocurrencies legal cash in Pakistan and provide a controlled avenue for trading, purchasing, and selling digital goods.
Governor Jameel Ahmad, who chairs the SBP’s Monetary Policy Committee (MPC), stressed that unapproved digital currency issuers will face severe consequences. By establishing control over Pakistan’s digital asset ecosystem and discouraging illicit activity, these regulations hope to safeguard consumers and maintain market stability.
Pakistan’s position on cryptocurrencies has significantly changed as a result of this action. In the past, the government was reluctant; some authorities even proposed a ban. Recent leadership changes, however, have shown a more positive attitude toward digital currencies and the industry’s future potential. In order to improve the nation’s financial infrastructure, the proposal also calls for the creation of a subsidiary dedicated to creating and overseeing digital payment systems.
The SBP announced a 2.5% interest rate cut in addition to the digital currency framework, citing stable global oil prices and decreased food inflation as significant causes. The MPC has a positive prognosis for Pakistan’s economy and anticipates 2.5% to 3.5% GDP growth in the next fiscal year.
Should the revisions be accepted, they will give Pakistan a methodical way to handle digital assets, fostering a more stable and controlled atmosphere for developments in cryptocurrencies and digital payments.
