The State Bank of Pakistan (SBP) has announced that it is preparing a legislative framework to launch a central bank digital currency (CBDC) by 2025.
The laws should apply to non-banking organizations wishing to obtain licenses for electronic money transactions (EMI) that offer payment instruments. The World Bank is reportedly involved in the development of the rules.
The rules should ensure that the deadlines for the launch of the digital currency are met, as well as prevent all attempts to use it for money laundering and terrorist financing. At the same time, SBP intends to strengthen consumer protection and develop rules for reporting.
Pakistani Finance Minister Asad Umar assured that the use of EMI to promote the digital economy will protect financial institutions from cyber security threats. With the help of digital currency, the Central Bank plans to reduce the level of corruption and level the disadvantages of its own fiat currency.
“This new category of organizations should complement our efforts to create an enabling environment for trade and commerce. It should also help enterprises increase productivity and contribute to international competitiveness,” the official said.
Previously, the Ministry of Finance of Pakistan discussed with industry participants the possibility of regulating digital assets and imposing a tax on cryptocurrencies.
Source: Bits
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