Pakistan’s Digitization Plan Includes New Cryptocurrency by 2025

Wilfred Michael 

Wilfred Michael

News reporter

02 April 2019,
17:59
Pakistan’s Digitization Plan Includes New Cryptocurrency by 2025

According to local reports, the State Bank of Pakistan (SBP) has plans to add its name to the list of countries to issue a central bank backed digital currency (CBDC).

SBP’s Deputy Governor Jameel Ahmad disclosed the matter in a ceremony held on Monday, April 1 to mark the release of the country’s rules for Electronic Money Institutions (EMIs) which includes cryptocurrency exchanges.

Jameel Ahmad said that Pakistan would launch the new cryptocurrency by the year 2025 with high hopes that it would promote financial inclusion and reduce inefficiency and corruption in the nation’s economy.

Aside from the cryptocurrency, the top official also hinted that the central banking authority would keep track of evolving technologies to have its operations fully digitized within the next decade.

Moving forward, Ahmad spoke extensively about the new regulations rolled out for cryptocurrencies, which we reported means a reversal of the country’s negative stance on the use of cryptocurrencies.

He noted that the “landmark regulations are a testament of SBP’s commitment towards openness, adoption of technology and digitization of the financial system.” He also confirmed that the draft rules had the full commitment and support from industry stakeholders who reviewed it before they were officially rolled out on Monday.

Meanwhile, although Pakistan’s proposed cryptocurrency may still be a “concept,” it is also important to note that a move in that direction would be against a recent warning about CBDC’s issued by Agustin Carstens, general manager of Bank of International Settlements (BIS).

Last month, Agustin Carstens labeled CBDCs as a patient for major surgery, warning that central banks should fully understand how it affects existing financial systems before issuing one.

Another region that has gone against the BIS’s warning is the Eastern Carribean Central Bank (ECCB) who also in March announced plans to issue a CBDC soon

 

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