State Bank of Pakistan mulls issuing digital currency

The State Bank of Pakistan (SBP) is considering launching a digital currency by 2025, a report from Dawn has revealed.

SBP’s Deputy Governor Jameel Ahmad recently said that the central bank was currently working on a concept of issuing digital currency by 2025 with the objective of promoting financial inclusion and reducing inefficiency and corruption.

In addition, the SBP is planning to adopt “evolving-realities of time and would be fully digitized and technology equipped by year 2030,” the report said.

As the central bank is gearing up for digitization, Finance Minister Asad Umar has urged the SBP and the Federal Investigation Agency (FIA) to ensure top-notch cybersecurity in the banking system.

“As we move towards digital economy, it is absolutely important to ensure cybersecurity,” he said, adding that even a single incident could lead to irreparable loss of trust.

The news comes on the heels of the new regulations for electronic money institutions (EMIs) published earlier this week by the SBP. The new rules prescribe minimum service standards and requirements for EMIs to ensure delivery of payment services in a safe, sound and cost-effective manner.

Under the new regulations, EMIs would be required to obtain the appropriate license from the central bank to issue e-money for the purpose of digital payments.

“These landmark regulations are a testament of SBP’s commitment towards openness, adoption of technology and digitisation of our financial system,” Ahmad said, adding the regulations were finalised with full support of the stakeholders who provided valuable feedback by thoroughly reviewing the draft.