The State Bank of Pakistan (SBP) has confirmed that its central bank digital currency (CBDC) initiative has entered the trial phase, marking a major milestone in the country’s journey toward digital finance. The project aims to create a safe and efficient alternative to cash, expanding access to financial services for millions of Pakistanis who remain outside the traditional banking system.
According to officials, the upcoming digital currency will enable transactions without the need for physical cash or even a bank account, thereby promoting financial inclusion across urban and rural areas alike.
The SBP is currently working on a regulatory framework to govern the use of the CBDC, ensuring that all necessary rules, monitoring systems, and safeguards are in place before the pilot launch.
The digital currency system is being designed to support everyday payments. Users will be able to transfer funds instantly using mobile phones, with transactions processed via QR codes. Registration will require only a national identity card, making the process accessible to the broader population.
The digital wallet, provided by the State Bank or licensed financial institutions, will allow money transfers by simply entering a recipient’s phone number. Additionally, government payments, such as taxes and utility fees, will also be payable through the wallet, offering a convenient and paperless solution for citizens.
Officials highlight that the move is part of Pakistan’s broader effort to modernize its financial ecosystem and reduce reliance on cash-based transactions. The CBDC will provide greater security, speed, and transparency, aligning Pakistan with global trends in digital finance.
Countries such as Nigeria have already launched fully operational CBDCs, while others, including China, Russia, and the United Arab Emirates, are running pilot programs.
Pakistan’s trial represents a critical step in positioning the country within the evolving digital financial landscape, with potential long-term benefits for efficiency, inclusion, and economic growth.
