SBP is Ready to Launch Pakistan’s First Digital Currency

The State Bank of Pakistan (SBP) is all set to kick start a pilot launch of digital currency in the next few months.

After completing the required groundwork, the SBP will go for the pilot launch of Pakistan’s first digital currency within two months, according to the Arab News quoting Deputy Government SBP Sima Kamil.

She was quoted that the sandbox will be launched in a month or two in a controlled environment provided for testing innovative products, services, or business models in a limited and supervised manner.

Kamil added that the launch of the digital currency was a part of their five-year strategy “SBP Vision 2028″.

The banking regulator has been reluctant to legalize digital currency within the country such as including Bitcoin, Litecoin, Pakcoin, OneCoin, and DasCoin, ultimately declaring them as illegal despite significant investors parking their investment in digital tenders.

However, the banking regulator came up with the idea to introduce its own digital currency. The deputy governor

of SBP clarified that CBDCs are different from cryptocurrencies.

Central Bank digital currencies (CBDCs) are more secure compared to cryptocurrencies and are designed to complement existing physical cash and traditional forms of electronic money. The currencies are built on blockchain technology (DLT) and are intended to provide a secure and efficient means of conducting digital transactions.

CBDCs have been launched by a handful of countries so far while other countries and central banks are examining them.

According to Atlantic Council CBDC tracker, so far, only Nigeria, Jamaica, and Bahamas have launched their CBDCs while other countries including China, India, Saudi Arabia, France, Ghana, Canada, and Uruguay have launched their pilots.