Richard Parks The State Bank of Pakistan (SBP) has proposed a legal framework to formally recognize digital assets, including cryptocurrencies, as official forms of currency in the country.
If approved, this framework would enable the SBP to issue a digital currency, potentially paving the way for a central bank digital currency (CBDC) for Pakistan. The SBP has submitted amendments to the State Bank of Pakistan Act, marking a notable shift from its previous stance, where it had cautioned against the use of virtual currencies.
Under this proposal, digital currencies such as Bitcoin could attain legal tender status in Pakistan, meaning they would be officially accepted for payment of goods, services, and debts. The proposed framework also includes provisions for regulating digital currency issuers, empowering the SBP to penalize any unauthorized entities that attempt to issue digital assets. This would expand the SBP’s oversight to encompass both physical and digital currency management.
Additionally, the proposal introduces a policy change allowing dual nationals to hold top positions within the central bank, reversing a previous restriction. This adjustment aligns with the government’s broader economic goals, which include GDP growth projections of 2.5-3.5% and initiatives to modernize Pakistan’s financial landscape in an increasingly digital global economy.