The State Bank of Pakistan (SBP) is getting ready to launch a trial version of the country’s first digital currency in the next two months, as stated by the deputy governor of the central bank. Central bank digital currencies (CBDCs) are being considered as a potential alternative to physical cash, and they are regulated and issued by government-owned banks.
In 2018, Pakistan declared virtual currencies like Bitcoin and Litecoin illegal. CBDCs, which are based on blockchain technology, provide better security and are meant to work alongside traditional forms of money. The SBP will conduct a pilot or test phase to carefully assess the digital currency before it is officially introduced. This aligns with their strategic plan, “SBP Vision 2028,” which aims to modernize the central bank and make it more focused on technology and the needs of the people.