Pakistan’s Central Bank Aims to Issue Its Own Digital Currency by 2025

Published at: April 2, 2019

Jameel Ahmad, the deputy governor of the State Bank of Pakistan (SBP), the nation’s central bank, declared that the institution aims to issue a digital currency by 2025, Pakistani YouTube news channel Public News reported on April 1.

English-language local media Dawn also reported today that Asad Umar, Pakistan’s finance minister, prompted the official’s statement during a ceremony celebrating the launch of Electronic Money Institutions (EMIs) on Monday, April 1.

According to Dawn, the minister asked the federal investigation agency and the central bank to ensure that the new system will feature cybersecurity. Umar purportedly claimed that a single high profile incident could irreparably damage trust in the banking system.

As part of his response, the central bank’s deputy governor, Ahmad, then declared that the institution is already working on releasing its central bank digital currency (CBDC) concept by 2025. According to the official, the aim is to promote financial inclusion and efficiency and combat corruption. The complete deployment of the CBDC, however, is set to happen by 2030.

As previously reported, Pakistan is implementing new cryptocurrency regulations in an effort to improve its track record fighting financial crime.

As Cointelegraph reported in February, Ukraine’s central bank has completed a pilot scheme for its own national digital currency, the e-hryvnia.

During the same month, the Oxford Business Law Blog published a research report conducted by a postdoctoral researcher from the University of Luxembourg noting that the idea of issuing a CBDC is too attractive to ignore.

Tags
Altcoin
Digital Currency
Cryptocurrencies
Central Bank
Pakistan
Cybersecurity
Banks
Security
Related Posts
CBDCs require governments to put a special focus on security
Today’s financial world is becoming increasingly digitized, and naturally, central banks want to adapt to the changing environment. The use of cash is rapidly declining. Globally, the rise of digital payment apps and COVID-19 have only accelerated the decline in cash usage, fueling interest in digital currencies and demand for easier payment solutions. As crypto adoption continues to expand, the idea of central bank digital currencies (CBDCs) has also gained momentum. Governments across the world have been flirting with, and examining, the idea of issuing their own CBDCs, with a handful already launching. It isn’t clear when CBDCs will become …
Adoption / Sept. 6, 2022
Digital ruble could be still vulnerable to fraud, Russian banks warn
Russia’s central bank digital currency, or CBDC, could contain a number of risks related to cybersecurity and fraud, according to several local financial institutions. The Association of Russian Banks, or ARB, has released its official feedback on Russia’s digital ruble project on Jan. 13. The study included 17 ABR credit institutions in Russia accounting for 58% of the total assets of the domestic banking system. According to the report, the majority of ARB members believe that risks associated with the digital ruble are similar to those of cashless transactions powered by banking accounts and cards, as well as cryptocurrencies. The …
Technology / Jan. 13, 2021
Singapore Act to License Cryptocurrency Firms Comes Into Effect
Legislation regulating the operations of cryptocurrency firms in Singapore comes into effect today, Jan. 28. The new Payment Services Act will regulate cryptocurrency payments and trading enterprises under some aspects of the regulatory regime that currently governs traditional payment services and require them to hold a license. Crypto payment services must also comply with the Financial Advisers Act, Insurance Act, Securities and Futures Act and the Trust Companies Act. The new rules place crypto services under the oversight of the Monetary Authority of Singapore. The regulator announced in a press release published earlier today that the new framework is expected …
Bitcoin / Jan. 28, 2020
Bank of Japan Official Calls for Deeper Understanding of Digital Currencies
Central banks should develop a deeper understanding of the consequences of issuing a digital currency, according to a Bank of Japan official. According to Reuters on Feb. 27, Bank of Japan Deputy Governor Masayoshi Amamiya explained that central bank digital currencies (CBDCs) could streamline settlements and facilitate private money flows, but also stifle private financial innovation and banks: “When countries consider issuing central bank digital currencies, they must conduct a comprehensive study on how it affects their settlement and financial systems.” CBDC less urgent in advanced economies Amamiya noted that — unlike emerging economies — Japan could not and can …
Regulation / Feb. 27, 2020
Japanese Official Calls for Urgent Development of Digital Yen to Counter China
Another Japanese lawmaker has publicly called for the swift development of the digital yen. The head of the banking and finance systems research commission at Japan's Liberal Democratic Party, Kozo Yamamoto, said today that the country should create a digital yen in two to three years. Reuters reported on Feb. 10 that Yamamoto said that plans for its central bank digital currency (CBDC) should be included in the government’s mid-year policy guidelines. He explained that digital currencies could quickly spread in emerging economies and help China — who is working on a CBDC — advance its digital hegemony. Because of …
Blockchain / Feb. 10, 2020