The State Bank of Pakistan (SBP) is preparing to launch a pilot project for a central bank digital currency (CBDC) as part of its push to modernize the country’s financial infrastructure and explore the future of sovereign-backed digital payments.
Speaking at the Reuters NEXT Asia summit in Singapore, SBP Governor Jameel Ahmad said the central bank is developing the technical and regulatory groundwork for a pilot run of a digital version of the Pakistani rupee, expected to begin in the near term.
We are building up our capacity on the central bank digital currency and hope to roll out a pilot soon.
The upcoming pilot will allow the SBP to test essential components such as digital wallets, payment infrastructure, and transaction authentication systems in real-world conditions, likely in collaboration with commercial banks and technology partners.
In May 2025, the SBP issued a clarification that virtual assets are not illegal in Pakistan. However, it cautioned that financial institutions should refrain from engaging in crypto-related services until a formal licensing framework is implemented.
There are risks associated, and at the same time, there are opportunities in this new emerging field. So we have to evaluate and manage the risk very carefully, and at the same time not allow to let go of the opportunity.
Pakistan’s move follows global trends, with countries like China, India, Nigeria, and Saudi Arabia actively testing or rolling out central bank digital currencies to enhance payment efficiency, financial inclusion, and state-level monetary control.
The SBP has not provided a launch date, but officials suggest the pilot could be rolled out within the current fiscal year, following internal readiness assessments and ongoing consultations with fintech stakeholders.
Unlike cryptocurrencies, which operate in decentralized systems, a CBDC would be fully controlled and backed by the central bank, carrying legal tender status and integrating with Pakistan’s formal financial system.
Experts believe this step is essential for reducing cash dependency, digitizing government payments, and expanding access to formal banking services across underserved populations.
More details on the CBDC pilot scope, participating institutions, and user access are expected in the coming weeks.
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