Getting its own CBDC (Central Bank Digital Currency) would give Pakistan a number of benefits including easier digital payment, easier remittance, higher efficiency and increased security
State Bank of Pakistan (SBP) Governor Jameel Ahmad has informed the Senate’s Standing Committee on Finance and Revenue that the State Bank is actively working towards creating Pakistan’s first ever digital currency known as the Central Bank Digital Currency (CBDC).
Held under the chairmanship of Senator Saleem Mandviwalla at Parliament House, the meeting was addressed by SBP Governor Jameel Ahmad who highlighted how central banks around the world have been launching their own digital currencies on a pilot basis and that the SBP is trying to learn from their experience.
Governor Ahmad added that the State Bank is currently busy reviewing and understanding the work of other central banks which have successfully created their own digital currencies, while also adding that the SBP will be cautious with the launch of its CBDC.
Currently over a dozen countries are known to have their own CBDC’s whereas over a 100 countries are known to be exploring plans to launch one. Launching a CBDC can give Pakistan a lot of benefits with the most primary ones being lower costs, increased efficiency, transparency, easier digital payment and remittance.
During the meeting, senator Saleem Mandviwalla reminded SBP Governor Ahmad how the State Bank used to be against digital banking but is now fast tracking the issuance of digital banking licenses, trying to prove how SBP regulators are known to be in denial about newer technologies including cryptocurrencies, saying that while the world is marching forward, Pakistan is continuing to tread a path in the opposite direction.