The State Bank of Pakistan signed new legislation for electronic money institutions to ensure timely CBDC issuance in the next three years.
Regulators see central bank digital currencies (CBDCs) as a means to boost fiat capabilities by adopting cryptocurrency technologies. Pakistan announced new legislation to launch a CBDC by 2025.
The State Bank of Pakistan (SBP) passed new laws requiring electronic money institutions (EMIs) to issue a CBDC within three years. Arab News reports that the World Bank helped Pakistan create new legislation.
In addition to CBDC launch timeline adherence, regulations mandate anti-money laundering and terror funding safeguards, consumer protection, and reporting.
SBP licenses EMIs to issue CBDCs. Finance Minister Asad Umar said EMIs would protect financial institutions from cyberattacks. SBP Deputy Governor Jameel Ahmad says that CBDCs could also reduce corruption and inefficiency caused by fiat currencies.
He said these unprecedented measures show the SBP's commitment to openness, technology, and digitizing our financial system. Pakistan is one of 100 countries actively looking into and making CBDC programs because of its immediate regulatory environment.
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India just launched a CBDC. Plans have been put in place by the Reserve Bank of India (RBI) to initiate a retail CBDC pilot by 2022. RBI is in the last stages of planning the retail digital rupee trial rollout, which will be tested by 10,000 to 50,000 bank users.
