State Bank of Pakistan Progressing Towards Launching Central Bank Digital Currency (CBDC)

 

In a recent meeting held at Parliament House under the chairmanship of Senator Saleem Mandviwalla, State Bank of Pakistan (SBP) Governor Jameel Ahmed revealed that the central bank is actively working on the development of its own digital currency, the Central Bank Digital Currency (CBDC).

Governor Jameel Ahmed informed the Senate's Standing Committee on Finance and Revenue that several central banks worldwide are currently piloting digital currencies, and the SBP aims to leverage their experiences as it ventures into the digital currency space.

While discussing the progress of CBDC implementation, Governor Ahmed emphasized that the SBP is exercising caution in its approach and carefully reviewing the initiatives taken by other central banks.

The launch of the CBDC is under thorough consideration, and the governor urged patience during this process.

During the meeting, Committee Chairman Saleem Mandviwalla pointed out the shift in the SBP's stance towards digital banking, highlighting how the central bank had previously been hesitant but is now issuing licenses to accelerate its adoption.

In another development, Governor Ahmed also informed the committee that the Small and Medium Enterprises (SME) Bank would be permanently closed due to significant losses incurred since its establishment. He stated that over Rs. 5 billion had already been refunded to SME account holders, with the remaining Rs. 2.5 billion to be returned.

As the SBP makes strides towards introducing Pakistan's first-ever digital currency, it seeks to navigate the challenges while keeping an eye on the evolving global financial landscape.