The State Bank of Pakistan (SBP) has put forward a proposal to establish a legal framework that would recognize digital assets, including cryptocurrencies, as official forms of currency in Pakistan.
If the proposal is approved, the SBP could issue its own digital currency, potentially leading to the creation of a central bank digital currency (CBDC). This move reflects a significant shift in the SBP’s approach, which has previously warned against the use of virtual currencies. The proposed amendments to the State Bank of Pakistan Act would enable digital currencies like Bitcoin to be accepted as legal tender in the country, meaning they could be used to pay for goods, services, and settle debts.
The framework also introduces regulatory measures, allowing the SBP to penalize unauthorized digital currency issuers and monitor digital asset transactions alongside physical currency oversight. This approach would give the SBP comprehensive control over both traditional and digital forms of currency in Pakistan.
In addition to these changes, the proposal would allow dual nationals to hold leadership positions within the central bank, overturning a previous restriction. These steps align with Pakistan’s broader economic goals, including GDP growth projections of 2.5–3.5% and efforts to modernize its financial systems as digital finance continues to grow globally.
