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Pakistan is intensifying efforts to launch its CBDC and has issued a timeframe within which it’ll achieve its aim.
Pakistan might be the latest in a long list of countries looking to harness the potential of using central bank-issued digital currencies (CBDC). This follows after it announced new regulations in hopes that they will ensure a successful CBDC launch by 2025.
Pakistan Approves New EMI Laws, Eyes CBDC Launch
As part of its efforts in this regard, the first aspect that Pakistan is looking to secure is the time frame within which it hopes to complete the CBDC launch. According to a local media report by Arab News, the State Bank of Pakistan (SBP) has already signed a new law that will license and regulate Electronic Money Institutions (EMIs). This means that the EMIs – which are non-bank entities, are required to obtain the said license before they are allowed to issue e-Money for the purpose of digital payments. So, essentially, while Pakistan continues on its financial technology revolution, it also wants to ensure that its CBDCs are ready for rollout, at most, within 3 years.
For what it’s worth, several global regulators have already identified CBDCs as massive support to traditional fiat. In fact, a large percentage of them believe that CBDCs will bridge the gap between fiat and digital assets. This is because fiat may now have exposure to some capabilities only made possible by such technologies as those that back cryptocurrency.
Deputy Governor of SBP Jameel Ahmad also shared some details about the decision to use EMIs to promote the advent of Pakistan’s digital era. Ahmad claims that the decision will help to keep fiat-based corruption to the barest minimum.
Meanwhile, having put together its new rules with the help of the World Bank, Pakistan is not only keen on quickly achieving a digitized economy. Some of its new rules and regulations are also targeted at curbing money laundering and terror financing. The regulations will also seek to bolster consumer protection, oversight, and regulatory reporting, amongst many other things.
Pakistan’s recent moves have now placed it alongside several other countries that are also currently exploring the idea.