Pakistan Prepares Digital Rupee Trial Amid Crypto Regulation Push

Pakistan is preparing to conduct a trial run for its digital currency, as confirmed by the State Bank of Pakistan (SBP) Governor Jameel Ahmad. The initiative involves a pilot program to test the functionality of a digital version of the Pakistani rupee within the financial system. This move positions Pakistan among the growing number of countries exploring blockchain-backed currencies through controlled rollouts.

The SBP is also working on finalizing legislation to regulate the broader digital asset space. The forthcoming legal framework will establish licensing and compliance standards for virtual asset service providers, offering clearer rules for crypto-related activities in the country. Governor Ahmad emphasized the government's cautious approach, aiming to balance the benefits of digital innovation with the need for financial stability.

This development follows the formation of the Pakistan Crypto Council (PCC) earlier this year, a government-supported initiative to promote the responsible growth of the virtual asset industry. With these efforts, Pakistan aims to update its financial infrastructure and align itself with global digital currency trends. The SBP's dual focus on a CBDC pilot and regulatory framework underscores the country's commitment to embracing digital innovation while mitigating associated risks.