While the world watches major economies experiment with digital currencies, Pakistan is preparing to make its own entry. The country’s central bank has announced plans to launch a pilot project for a central bank digital currency (CBDC) and finalize long-awaited legislation to regulate virtual assets. This marks a pivotal moment for a nation traditionally cautious about crypto, now signaling an intent to modernize its financial infrastructure while keeping risk under control.
Pakistan’s CBDC Pilot Program
Pakistan’s central bank governor, Jameel Ahmad, confirmed during the Reuters NEXT Asia summit in Singapore that the State Bank of Pakistan (SBP) is building capacity to test a digital currency and will launch a pilot program soon.
The pilot program is Pakistan’s first step toward a digital rupee. It reflects a global shift where central banks are testing blockchain-based payments to enhance security, efficiency, and inclusion.
CBDC will likely focus on wholesale use first, targeting interbank transactions. The move mirrors early digital currency projects from countries like India, China, and Nigeria. SBP is collaborating with technology partners to build necessary infrastructure.
This pilot could improve the traceability of funds, reduce transaction costs, and enhance the efficiency of Pakistan’s financial system—all while retaining central control over monetary policy.
Virtual Assets Regulation in Pakistan
Pakistan isn’t just experimenting with digital money—it’s building a full legal ecosystem for virtual assets. Ahmad noted that the central bank is finalizing a law to govern the licensing and regulation of the sector.
The upcoming Virtual Assets Act, 2025 will provide clarity, oversight, and formal legitimacy to crypto businesses operating in Pakistan.
A new independent crypto regulator will be created under this act. The law is aimed at reducing regulatory uncertainty for investors and institutions. The Pakistan Crypto Council (PCC) is actively pushing adoption and exploring Bitcoin reserves using excess energy.
This legal backing will be vital for attracting international investment and ensuring that crypto adoption is both secure and structured.
Macroeconomic Stability & the Adoption of Blockchain Technology
All of this is happening alongside a backdrop of economic improvement. Pakistan’s benchmark interest rate has dropped from 22% to 11% amid falling inflation—down to 3.2% in June 2025, the lowest in nine years.
Monetary stability provides the confidence and bandwidth to explore financial innovations like digital currency and crypto regulation.
Foreign reserves have increased from under $3B to $14.5B in two years. The ongoing IMF program has boosted macroeconomic discipline and reform momentum. The SBP is focused on inflation targeting and exchange rate management while minimizing exposure to global currency shocks.
With stability in sight, the environment is more conducive to safely integrating digital finance innovations.
Conclusion: Pakistan Steps into the Future with Caution and Clarity
Pakistan’s move toward digital currency and crypto regulation is more than a tech story—it’s a strategic economic shift. With a central bank digital currency pilot on the horizon and legal frameworks falling into place, the country is embracing modern finance cautiously but deliberately.
This signals to investors, businesses, and the global crypto community that Pakistan may soon become a viable and regulated player in the digital asset space—provided it continues balancing innovation with robust oversight.
