The Pakistani government has proposed amendments to the State Bank of Pakistan (SBP) Act, signaling a possible shift in its financial policy towards the legalization of cryptocurrencies. The amendments would allow the SBP to issue digital currency and manage both physical and digital forms of money. The proposal also grants the SBP the power to conduct "central bank digital currency" business, potentially making CBDCs legal tender. Additionally, the SBP plans to establish a subsidiary to develop and operate digital payment systems. Previously, Pakistan's central bank categorized cryptocurrencies as illegal tender, but the proposed amendments introduce penalties for unauthorized issuance of digital currencies. While no timeline has been given for approval, these changes indicate a potential move towards regulatory oversight and the integration of digital currencies into Pakistan's financial framework.



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