Pakistan Begins Testing Digital Currency to Boost Cashless Payments

Pakistan is taking a big step towards digital payments as the State Bank of Pakistan (SBP) starts experimenting with its own digital currency, called a central bank digital currency (CBDC).

This new digital money will let people make payments without cash or even a bank account, helping more people join the financial system.

The SBP is working on rules to manage the digital currency before launching a pilot program. The goal is to make everyday payments faster and safer using mobile phones.

People will use a digital wallet app provided by the State Bank or approved banks. They can pay by scanning QR codes or sending money using a phone number. Registration will use the national ID card.

The digital wallet will also let people pay government fees and taxes easily.

Pakistan plans to learn from other countries like Nigeria, China, Russia, and the UAE, which are already testing or using digital currencies, to create a system that fits Pakistan’s needs.