State Bank’s big announcement, First step toward a cashless economy

The State Bank of Pakistan (SBP) has taken a big step toward a cashless economy by launching a pilot project for a Central Bank Digital Currency (CBDC) in partnership with Japanese blockchain company Soramitsu.

According to Nikkei Asia, work on the project began earlier this year. The digital Pakistani rupee will run on Soramitsu’s CBDC platform, with funding provided by Japan’s Ministry of Economy, Trade, and Industry. The initiative is part of the Global South Future-Oriented Co-Creation Project.

The main goal is to cut billions of rupees in costs spent on printing, transporting, and securing cash, while making Pakistan’s financial system more efficient and transparent.

Soramitsu, based in Tokyo, has already built Cambodia’s successful digital currency, Bakong. With Pakistan’s population of over 250 million and an economy worth more than $400 billion, the company says this is its largest and most important project yet.

One standout feature is the development of offline transactions, allowing people to use digital currency on smartphones without an internet connection. This could be a game-changer for developing countries like Pakistan and could serve as a model for other economies.

SBP Governor Jameel Ahmad has confirmed that the central bank is ready to start the CBDC pilot and is finalizing a comprehensive regulatory framework for virtual assets.

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