The State Bank of Pakistan has recently put forward a groundbreaking proposal to establish a legal framework that would officially recognize digital assets, including cryptocurrencies, as legitimate forms of currency within the country. If this proposal is approved, it would give the State Bank of Pakistan the authority to issue a digital currency, potentially paving the way for the introduction of a central bank digital currency for Pakistan.
This proposal involves amendments to the State Bank of Pakistan Act, marking a significant shift in Pakistan’s stance towards digital currencies. Previously, the State Bank of Pakistan had issued warnings against the use of virtual currencies like Bitcoin (BTC). However, if this proposal goes through, digital currencies could be used as legal tender in Pakistan, meaning that they would be accepted for the payment of goods, services, and debts.
One key aspect of the proposal is the State Bank of Pakistan’s enhanced oversight of digital currencies. The framework outlines a system for penalizing unauthorized digital currency issuers and places the management of digital currencies under the purview of the State Bank of Pakistan. This would allow the central bank to regulate currency in both physical and digital forms, ensuring greater control and security in the digital financial landscape.
Moreover, the proposed framework includes a provision that would permit dual nationals to hold top positions within the central bank. This move represents a departure from the previous restriction on such appointments and is in line with the government’s broader economic objectives. These objectives include targeted GDP growth rates of 2.5-3.5% and initiatives to modernize Pakistan’s financial sector to align with the global trend towards digital finance.
Overall, the proposed crypto framework in Pakistan has the potential to revolutionize the country’s financial system by embracing digital assets and cryptocurrencies. If implemented successfully, this framework could position Pakistan as a leader in digital finance innovation, driving economic growth and enhancing financial inclusion for its citizens. As the world continues to move towards digital currencies and financial technologies, Pakistan’s proactive approach to regulating digital assets could set a positive example for other countries looking to navigate the evolving landscape of digital finance.