Karachi: State Bank of Pakistan (SBP) Governor Jameel Ahmad informed the Senate’s Standing Committee on Finance and Revenue about the central bank’s ongoing efforts to launch its own digital currency, known as the Central Bank Digital Currency (CBDC).
The meeting, presided over by Senator Saleem Mandviwalla at Parliament House, provided a platform for the SBP governor to highlight that many central banks worldwide are currently exploring digital currencies on a pilot basis, and the SBP is keen on drawing insights from their experiences.
During the session, Governor Jameel Ahmad stated that the SBP is thoroughly reviewing the initiatives taken by other central banks. He emphasized the need for patience, explaining that the bank is proceeding cautiously with the launch of the CBDC.
Committee chairman Saleem Mandviwalla pointed out a shift in the SBP’s stance, highlighting that the central bank was previously against digital banking in the country, but it has now begun issuing licenses to expedite its implementation.
Mandviwalla expressed concerns about the regulator’s denial of cryptocurrencies, remarking on how the rest of the world is progressing in this area while Pakistan is seemingly heading in the opposite direction.
Meanwhile, during the committee session, Governor Jameel Ahmad also announced that the Small and Medium Enterprises (SME) Bank will be permanently closed due to significant losses sustained since its inception. The bank has already refunded over Rs. 5 billion to SME account holders, with the remaining Rs. 2.5 billion to be returned as well.
As the SBP gears up to develop its own digital currency, the country awaits further developments that could shape the future of financial transactions and digital banking in Pakistan.
