Pakistan Central Bank will test its own digital currency in the coming months – Bits Media

State Bank of Pakistan (SBP) announced his readiness to start testing his own digital currency, the launch of which is planned for 2025 year.

Pakistan Central Bank Manager Jamil Ahmad (Jameel Ahmad) reported, that in the coming months the regulator plans to accelerate development of digital Pakistani rupees, In order not to stay behind innovation. SBP will adopt the experience of other central banks, which will avoid possible errors.

However, the regulator will apply a balanced and leisurely approach to the launch of a pilot project, focusing on a thorough study of advantages and risks, related to state stablecoin. CBDC can be available for public use until the end 2025 of the year, Ahmad noted.

SBP manager said, that now the study of the State Cricketing is at an early stage, Therefore, it is unknown, What CBDC will the Central Bank test: Retail or wholesale. Expected, that the Central Bank will test two versions of digital Pakistani rupee, How did the reserve bank India (RBI). 

Previously, RBI said, that retail digital rupee is intended for the private sector, and wholesale - for banks and financial organizations. In November, the Indian Central Bank began testing the wholesale CBDC for calculations in the secondary market with securities.

The Central Bank of Pakistan believes, that state stabilcoin can accelerate calculations and international money transfers. The upcoming pilot project will be held in stages, with the involvement of local commercial banks and a small number of participants. If testing is successful, Other Pakistani cities will also take part in the pilot program.

At the end of last year, the Bank of Pakistan began to prepare the legislative framework, laying the foundation for launching digital currency Central Bank. About that, that digital rupee could become an alternative to private cryptocurrencies, and also help reduce dependence on US dollar, The Central Bank began to think in 2019 year.