Pakistan Advances CBDC Prototype with Global Institutional Support
Pakistan aims to enhance financial inclusion and reduce remittance costs through a rupee-backed stablecoin and CBDC prototype, developed with World Bank and IMF collaboration.
Pakistan is preparing to launch a rupee-backed stablecoin and a central bank digital currency (CBDC) prototype to increase financial inclusion and lower remittance costs. The State Bank is working with the World Bank and IMF on the prototype, and in September invited international crypto exchanges to apply for licensing. State Bank official Faisal Mazhar confirmed plans for a CBDC pilot before rollout. Pakistan Banks' Association President Zafar Masud has warned that regulatory delays could cost up to $25 billion, underscoring the urgency of adopting digital asset frameworks.
- Central Bank Digital Currency (CBDC): A digital form of a country’s fiat currency issued and regulated by its central bank.
- Stablecoin: A cryptocurrency pegged to a stable asset like fiat currency to reduce volatility.
- Rupee-backed stablecoin: A stablecoin pegged to the Pakistani rupee, designed to maintain a consistent value and support digital transactions.