Is Pakistan Moving Towards Digital Currency? Check out!

Digitalization is the need of the time and many economic experts speculate that the note currency will be substituted by digital currency soon.  In this regard, the federal government has proposed legalizing digital currencies in Pakistan through amendments to the State Bank of Pakistan (SBP) Act. These changes would allow cryptocurrencies, including Bitcoin, to be recognized as legal tender. If passed, the SBP would gain authority to issue and regulate digital currencies directly.

The amendments propose expanding Section 24 of the SBP Act to include digital forms of currency, giving the central bank control over digital payment systems. To ensure secure management, the SBP may also set up a subsidiary focused on developing these systems. Additionally, a penalty clause has been suggested, imposing fines of twice the value for any unauthorized digital currency issuance.

Another proposed change would lift the restriction on dual nationals holding senior positions in the SBP, including roles like Governor, deputy governor, and non-executive directors. This restriction was initially put in place in January 2022 due to IMF recommendations but is now under review.

Further amendments to Sections 9A and 9B would give the SBP board expanded control over financial reporting. These changes would allow the board to approve key reports, including the SBP’s annual reports, and give the chairperson or three non-executive directors the power to call board meetings.

If approved, these changes could bring Pakistan closer to a digital currency framework, enhancing financial transparency and oversight.

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SBP Prepares for Launching Digital Currency in Pakistan