As major banking institutions actively exploring new currency systems worldwide, the State Bank of Pakistan also announced its initiative to launch its own digital currency.
In a recent development, Pakistan’s central bank is taking initial steps to launch a digital currency that is comparable to cryptocurrencies like Bitcoin. Digital currencies show advancement in another step for the digital economic system.
Pakistan aimed to come up with its own digital currency to replace the physical currency, following the latest trends, which according to economic experts holds quite an importance.
Lately, the Additional Director of the Digital Financial Services Group at the State Bank of Pakistan (SBP)v Shoukat Bizinjo said Pakistan is looking into the idea of CBBCs (callable bull/bear contracts) as a potential route for launching digital currencies.
Addressing International Conference on Mobile Commerce 2023, he said the country’s central bank is reviewing and consulting with other central banks regarding CBBCs and digital currency.
He said callable bull/bear contracts are structured investment products that mirror the performance of underlying assets without requiring investors to pay the entire cost of ownership of those assets.
The official also revealed that state bank is currently in talks with regional business leaders to launch digital money in the country. He also mentioned suggesting development made in the area of e-banking by Electronic Money Institutions (EMIs).
He said EMIs effectively introduced e-money wallets for customers and firms, with other digital payment tools like prepaid cards and contactless payment choices.
Furthermore, SBP official also mentioned that there are 12 EMIs in various stages of acquiring licenses from the central bank.