Business Desk 
Oct 01, 2025
In a significant step in investigating whether a digital currency could be introduced into Pakistan's financial system, the proof-of-concept (POC) phase of a partnership between the State Bank of Pakistan (SBP) and central bank digital currency (CBDC) solution providers has begun.
A central bank can issue a digital currency known as a CBDC, which enables people and companies to make payments without using conventional bank accounts.
In order to maintain stability in the domestic financial system, the SBP is evaluating technology, human resource needs, and possible use cases while also reviewing global experiences.
The Bahamas, Jamaica, and Nigeria are among the few nations that have introduced CBDCs.
Pakistan is among the majority of other countries that are still in the research and pilot stages.
The SBP's cautious approach demonstrates its dedication to thoroughly weighing the advantages and difficulties of digital currencies.
The SBP intends to issue a digital currency that is based on the Pakistani rupee and can be used to buy digital assets, according to Acting Deputy Governor Dr Inayat Hussain.
To match digital currency operations with their future requirements, commercial banks will be consulted.
Under the recently passed Virtual Assets Ordinance, the SBP is collaborating with the Pakistan Virtual Assets Regulatory Authority (PVARA) to regulate virtual assets.
A strong regulatory framework will be established with the aid of this cooperative approach.
The SBP wants to increase financial inclusion, enhance payment efficiency, and modernise Pakistan's financial system by investigating digital currencies.
The POC phase will lay the groundwork for a more effective financial system by assisting in determining whether the introduction of a digital currency is feasible.
Pakistan can leverage the potential of digital currencies to propel economic growth and development if it plans carefully.
