The State Bank of Pakistan (SBP) has begun collaborating with central bank digital currency (CBDC) solution providers at the proof-of-concept (POC) stage, exploring the feasibility of introducing a digital currency in the country’s financial system.
CBDCs are central bank–issued digital versions of fiat money that can be stored in mobile wallets, cards, or other digital devices, enabling individuals and businesses to make payments without using traditional bank accounts.
The SBP said it is closely reviewing international experiences, assessing technology, human resource requirements, and potential use cases while ensuring stability in the domestic financial system.
Globally, only a few countries, including Nigeria (e-Naira), the Bahamas (Sand Dollar), and Jamaica (Jam-Dex), have launched CBDCs, while most others remain in the research and pilot phases.
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The SBP emphasized that its current POC phase is aimed at testing both technical and policy assumptions, building infrastructure, and evaluating interoperability with existing systems before moving to live pilot projects.
The central bank is also engaging with virtual assets under the newly enacted Virtual Assets Ordinance in coordination with the Pakistan Virtual Assets Regulatory Authority (PVARA).
Acting Deputy Governor Dr. Inayat Hussain told the Senate Standing Committee on Finance that the SBP plans to issue a digital currency pegged to the Pakistani rupee, which could be used to purchase digital assets. He added that commercial banks would be consulted to align digital currency operations with their future needs.
