Islamabad: In a significant move towards digitising the country’s financial system, the State Bank of Pakistan (SBP) is partnering with Japanese blockchain developer Soramitsu to pilot a central bank digital currency (CBDC) in 2025, Nikkei Asia reported on Tuesday.
The pilot project for the digital Pakistani rupee will run on Soramitsu’s CBDC platform, funded by Japan’s Ministry of Economy, Trade and Industry under its Global South Future-Oriented Co-Creation Project.
According to experts, the initiative aims to address Pakistan’s high cash reliance, especially in rural areas where many transactions — including wage payments — remain cash-based, and bank account ownership is low. The CBDC is expected to help cut the high costs associated with cash distribution.
Soramitsu, which previously developed Cambodia’s Bakong digital currency, described Pakistan’s project — serving a population of 250 million and a USD 400 billion economy — as its largest undertaking to date. The company is also working on offline payment capabilities to allow smartphone transactions without internet access, potentially creating a model for other developing economies.
SBP Governor Jameel Ahmad recently confirmed that the central bank is finalising legislation to regulate virtual assets and preparing to launch a digital currency pilot. Speaking at the Reuters NEXT Asia summit in Singapore last month, Ahmad said the new law would lay the groundwork for licensing and regulating the sector, adding that the SBP is already in contact with technology partners.
Pakistan has recently accelerated its push to modernise the financial sector, establishing the government-backed Pakistan Crypto Council (PCC) in March to promote virtual asset adoption. The PCC is exploring bitcoin mining using surplus energy, planning a state-run bitcoin reserve, and has appointed Binance founder Changpeng Zhao as a strategic adviser.
While the SBP clarified in May that virtual assets are not illegal, it has advised financial institutions to refrain from engaging with them until a formal licensing framework is in place.
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