The State Bank of Pakistan has recently revealed its plan to develop its digital currency — reported to be “in the likeness of bitcoin,” — joining the ranks of countries attempting their own version of CBDC.

According to the report, Pakistan intends to introduce its own digital currency, with features “comparable to bitcoin,” as a replacement for physical currency, aligning with the current global trend observed in other countries’ pursuit of their own central bank digital currency (CBDCs).

According to a report by Daily Pakistan, the introduction of the digital currency in Pakistan will “interrupt the use of physical currency, reduce the expenses associated with financial transactions, and change the circulation of capital within society.”

Recently, Shoukat Bizinjo, the Additional Director of the Digital Financial Services Group at the State Bank of Pakistan (SBP), expressed that Pakistan is actively exploring the concept of callable bull/bear contracts (CBBCs) as a potential avenue for introducing digital currencies.

During his speech at the International Conference on Mobile Commerce 2023, Bizinjo highlighted that the State Bank of Pakistan is actively engaged in a comprehensive evaluation and consultation process with other central banks concerning callable bull/bear contracts (CBBCs) and central bank digital currencies.

The official further disclosed that the State Bank of Pakistan (SBP) is presently engaged in discussions with local business leaders to introduce digital currency within the country. In addition, the official highlighted their advancements made in the realm of e-banking by Electronic Money Institutions (EMIs).

According to the official, EMIs have successfully introduced e-money wallets for both customers and businesses, along with other digital payment options such as prepaid cards and contactless payments.

Moreover, the SBP official also noted that there are currently 12 EMIs at different stages of obtaining licenses from the central bank.