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RegulationJune 1, 20268h agoSource: DAWN

Pakistan Central Bank Launches CBDC Pilot Program

The State Bank of Pakistan has announced a pilot program for a Central Bank Digital Currency (CBDC) in collaboration with local fintech firms.

The State Bank of Pakistan (SBP) has announced a pilot program for a Central Bank Digital Currency (CBDC), marking a significant step in the country's digital finance evolution.

Pilot Details

  • Name: Digital Rupee (dPKR)
  • Scope: 5 million users in Karachi, Lahore, Islamabad
  • Partners: JazzCash, EasyPaisa, HBL, UBL
  • Duration: 12 months
  • Use Cases: P2P payments, merchant payments, salary disbursement

    • How It Works

    The Digital Rupee will be:

  • 1:1 backed by physical PKR
  • Issued by SBP
  • Distributed through commercial banks and mobile wallets
  • Settable instantly, 24/7
  • Free for basic P2P transfers

    • Why CBDC Now?

    Pakistan's motivations include:

  • Financial Inclusion — 30% of adults are unbanked
  • Remittance Efficiency — $30B in annual remittances
  • Cost Reduction — Cash handling costs the economy 1% of GDP
  • Monetary Policy — Real-time tracking of money flows

    • Impact on Crypto

    The CBDC pilot does not affect existing crypto regulations. Bitcoin and other cryptocurrencies remain legal (as property) but are not legal tender.

    For those who value financial sovereignty, Bitcoin remains the alternative. But for daily use, the Digital Rupee may offer practical advantages.

    Read on DAWN