The government of Pakistan has proposed changes to the SBP Act to potentially alter the country’s financial policies and legalize cryptocurrencies.
The suggested amendments would give the SBP the ability to issue digital currency, manage both physical and digital forms, and conduct Central Bank Digital Currency (CBDC) operations, making CBDCs a valid form of payment.
Moreover, the SBP plans to create a subsidiary to handle digital payment systems. The revisions also introduce penalties for unauthorized issuance of digital currency, resulting in fines double the value of the unlawfully issued currency.
While there is no set timeline for the approval of these amendments by the federal cabinet, they could lead to more regulatory oversight and the incorporation of digital currency into Pakistan’s financial system.
