Pakistan’s central bank is making significant progress in the digital banking sector, aiming to launch a digital currency analogous to cryptocurrencies like Bitcoin in the foreseeable future.
Shoukat Bizinjo, the Additional Director of the Digital Financial Services Group at the State Bank of Pakistan (SBP), disclosed that numerous global central banks, including Pakistan’s, are examining CBBCs (callable bull/bear contracts) as a potential pathway for introducing digital currencies.
At the 16th International Conference on Mobile Commerce 2023, hosted by Total Communications, Bizinjo stated, “The SBP is currently in the process of reviewing and consulting with other central banks about CBBCs and digital currency.”
According to a press release from TC, CBBCs are investment instruments that track the performance of underlying assets without compelling investors to bear the full ownership cost of those assets.
Bizinjo also revealed that the SBP is engaging with domestic industry stakeholders about launching digital currency within Pakistan.
Moreover, he drew attention to the strides made by Electronic Money Institutions (EMIs) in e-banking. EMIs have successfully deployed e-money wallets for consumers and merchants and other digital payment tools like prepaid cards and contactless payment solutions.
Presently, Pakistan hosts four operational commercial EMIs, namely NayaPak, Finja, CMPECC, and Sada Tech Pakistan. Bizinjo reported that these EMIs collectively hold an e-money balance of Rs2 billion, managing 1.6 million e-money wallets and 2.4 million payment cards as of March 31, 2023.
He added that around 12 EMIs are in different stages of obtaining licenses from the central bank, and numerous other companies are continually liaising with the SBP to become licensed EMIs.
