The State Bank of Pakistan (SBP) has put forth a legislative framework to authenticate digital assets, including cryptocurrency, as formal types of currency.
If sanctioned, the blueprint would permit the SBP to circulate a digital currency, potentially paving the way to a central bank digital currency for Pakistan.
The SBP recommended amendments to the State Bank of Pakistan Act, signaling a shift in the nation’s stance towards digital currencies, as reported by the Tribune. The proposal seeks to legalize digital currencies, like Bitcoin (BTC), to be used as legal tender, a substantial deviation from the SBP’s prior admonishments against virtual currencies.
In Pakistan, the status of legal tender implies that a currency is accepted as a means of payment for goods, services, and debts, according to the Tribune.
The proposal also delineates a system for penalizing unauthorized issuers of digital currency. By incorporating digital currency management into the SBP’s duties, the proposal would empower the bank to supervise currency in both physical and digital manifestations.
Furthermore, the framework would allow dual nationality holders to take up top positions within the central bank, overturning a regulation that previously limited such appointments.
This shift is in line with the government’s wider economic goals, which encompass GDP growth forecasts of 2.5-3.5% and initiatives to modernize Pakistan’s financial landscape as the world progressively transitions towards digital finance.