Islamabad, Nov 4: Currently the federal government has suggested the reforms the Act pertaining to the State Bank of Pakistan (SBP) for legalizing digital currencies in the nation.
The intended changes will open the way to using digital currencies, such as cryptocurrencies, for payments.
Approved steps could go as far as making these flagship coins like Bitcoin legally recognized.
The proposed amendments also provide legal grounds to the SBP to issue
and control the digital currency in any form; physical and digital.
New sections for licensing and recognizing digital currencies as legal tender under
the authority of the central bank would be amended to the SBP Act.
The changes extend section 24, which permits the printing of banknotes, to enclose digitized form to allow SBP to administer and supervise electronic monetary platforms.
The bank may also create a separate company to implement
and manage these systems for compliance and safe financial transactions’ frameworks.
A new penalty clause is proposed to discourage any unauthorized issuance of digital currency by providing penalties equal to twice of the value of the issuance.
Meanwhile, the changes propose lifting the ban on dual nationals serving as SBP governors, deputy governors, and non-executive directors.
This prohibition on dual nationals is being reexamined. It was first put into effect in January 2022 as part of IMF-sponsored initiatives.
Additionally, the modifications aim to revise Section 9A to give the board more authority to approve important financial reports,
including as the annual and half-yearly reports from the SBP, reports on economic and financial stability, and financial statements from banks.
Additionally, the chairperson of the board or three non-executive directors would be empowered to call meetings,
simplify board operations and make governance procedures clearer with modifications to Section 9B.
