
Pakistan has begun a trial of its national digital currency, a significant move towards achieving the country's ultimate digitalisation in the financial system.
The digital currency initiative comes as a notable stride towards Pakistan's ambitious digital transformation goal across all sectors, which links digital ID services with banking and payments.
As per financial experts, the rollout of digital currency in Pakistan will expand financial access to nearly seven million citizens who currently lack formal identification.
According to TechJuice, the trial is led by the National Database and Registration Authority (NADRA), which recently upgraded its security systems for enhanced protection of users' digital identities.
This digital currency in Pakistan will work alongside the existing digital infrastructure, including the Pak-ID mobile app that allows citizens to manage their IDs and track applications in real time.
It must be noted that in the wake of this transition to digital currency, the government is setting up new rules to regulate cryptocurrencies and digital assets.
This trial brings Pakistan on par with countries that are experimenting with central bank digital currencies.