Pakistan Moves to Introduce Own Digital Currency Like Bitcoin - Income Hunts

Pakistan Moves to Introduce Own Digital Currency Like Bitcoin

The State Bank of Pakistan's Plan to Introduce Digital Currency: Advancing Digital Banking and Ensuring Secure Transactions

Pakistan Moves to Introduce Own Digital Currency Like Bitcoin | Inocme Hunts


The State Bank of Pakistan (SBP) has unveiled its upcoming introduction of a digital currency, marking a significant milestone for Digital Pakistan and the progress of digital banking. This implementation aims not only to replace physical currency but also to generate cost savings in financial transactions. However, strict regulations will be necessary to guarantee the security and efficiency of the digital currency system.

Transformation in Capital Movement:

The introduction of digital currency in Pakistan will have far-reaching effects, reshaping how capital flows within society. This initiative aligns with the SBP's objective of embracing digitalization to modernize the country's financial landscape.

Exploring Callable Bull/Bear Contracts (CBBCs):

Shoukat Bizinjo, the Additional Director of the State Bank's Digital Financial Services Group, revealed that the SBP, alongside other central banks, is exploring the potential use of callable bull/bear contracts (CBBCs) as an approach to launching digital currencies. This demonstrates the extensive research and collaboration taking place to establish a robust and trustworthy digital currency system.

Ongoing Evaluation and Engagement:

During the International Conference on Mobile Commerce 2023, Bizinjo emphasized the SBP's continuous evaluation of CBBCs and its active engagement with other banks to gain valuable insights into the implementation of digital currencies.

Progress of Electronic Money Institutions (EMIs):

Bizinjo also acknowledged the notable progress made by Electronic Money Institutions (EMIs) in Pakistan. These institutions have introduced various digital payment solutions, including e-money wallets for consumers and merchants, prepaid cards, and contactless payment options.

Active EMIs and Increasing Adoption:

Currently, there are four active commercial Electronic Money Institutions in Pakistan: NayaPak, Finja, CMPECC, and Sada Tech Pakistan. Together, these institutions manage a substantial e-money balance of Rs2 billion and serve 1.6 million e-money wallets, indicating the growing adoption of digital financial services in the country.

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