Pakistan’s central bank, the State Bank of Pakistan (SBP), is making significant progress in the realm of digital banking and has set its sights on introducing a digital currency akin to popular cryptocurrencies such as Bitcoin in the near future.
During the 16th International Conference on Mobile Commerce 2023, Shoukat Bizinjo, the Additional Director of the Digital Financial Services Group at the SBP, unveiled that central banks globally, including Pakistan’s, are delving into the realm of CBBCs (callable bull/bear contracts) as a potential pathway for launching digital currencies.
Bizinjo affirmed that the SBP is actively engaged in reviewing and consulting with other central banks on CBBCs and digital currency matters. The 16th International Conference on Mobile Commerce 2023, organized by Total Communications, provided a platform for Bizinjo to make these revelations.
CBBCs, as elaborated in a press statement from Total Communications, function as structured investment products. That enable investors to track the performance of underlying assets without incurring the full costs associated with ownership.
Furthermore, Bizinjo disclosed that discussions are underway between the SBP and local industrial players to introduce digital currency within Pakistan. The central bank is actively seeking collaboration and input from various stakeholders to ensure a smooth and successful implementation.
In addition to digital currency, Bizinjo highlighted the remarkable progress made by Electronic Money Institutions (EMIs) in the field of e-banking. EMIs have successfully launched e-money wallets for both consumers and merchants, offering additional digital payment instruments such as prepaid cards and contactless payment options.
Currently, Pakistan hosts four live commercial EMIs, including NayaPak, Finja, CMPECC, and Sada Tech Pakistan. Bizinjo emphasized the impressive figures associated with EMIs, citing an e-money balance of Rs2 billion, managing 1.6 million e-money wallets, and facilitating 2.4 million payment cards as of March 31, 2023.
Moreover, Bizinjo revealed that around 12 EMIs are at different stages of acquiring licenses from the central bank, with numerous other companies in constant communication with the SBP, eager to become EMIs.
SBP’s commitment to digital currency and collaborations with EMIs drive Pakistan’s financial landscape forward in the digital era. These initiatives position Pakistan at the forefront of the evolving digital currency revolution. Propelling the nation toward greater financial inclusivity and technological advancements.
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