Pakistan to Launch Central Bank Digital Currency Pilot

SBP Digital Currency Pilot

State Bank of Pakistan (SBP) is progressing towards rolling out a digital currency pilot soon. This move is part of broader financial reforms led by Governor Jameel Ahmad to modernize the digital asset regulation framework.

Governor Jameel Ahmad announced this strategic initiative at the Reuters NEXT Asia summit. “The new legal framework will lay down the foundations for the licensing and regulation of the virtual asset space,” Jameel Ahmad noted. SBP is backed by the Virtual Assets Act, 2025, confirmed by President Asif Ali Zardari’s assent, which formalizes regulation over virtual assets.

The pilot coincides with significant reforms to modernize Pakistan’s financial sector. This includes new licensing frameworks for digital assets. No specific figures on funding allocations for the pilot have been disclosed yet.

The Pakistani Crypto Council’s involvement signals potential future changes. This may include bitcoin mining projects and establishing a state bitcoin reserve. No immediate effects are observed on major digital assets or associated markets.

Past CBDC launches globally affected local banking and finance regulations without directly influencing major cryptocurrencies. Pakistan may demonstrate similar systemic effects via regulatory narratives without substantial price shifts in tokens.

Given historical trends, CBDC launches typically lead to more regulatory than market impacts. Countries like China and India saw infrastructure developments, while Nigeria experienced mixed fintech regulatory outcomes. Pakistan’s move could yield comparable results.