State Bank to roll out digital currency pilot soon, says governor

The State Bank of Pakistan (SBP) is preparing to launch a pilot project for a central bank digital currency (CBDC) and is in the final stages of drafting legislation to oversee virtual assets, Governor Jameel Ahmad said on Wednesday.

Speaking at the Reuters NEXT Asia summit in Singapore, Ahmad said the SBP was “developing internal capacity” to support a digital currency initiative and aimed to introduce a trial run in the near future.

He shared the stage with Sri Lanka’s central bank governor, P. Nandalal Weerasinghe, as the two discussed monetary policy challenges across South Asia.

Pakistan’s planned rollout mirrors similar initiatives undertaken by monetary authorities in countries such as China, India, Nigeria, and members of the Gulf Cooperation Council, where pilot schemes are already underway to explore the benefits and risks of state-backed digital currencies.

Ahmad added that a forthcoming legislative framework would establish the foundation for licensing and regulating digital assets, and confirmed the central bank was in contact with potential technology collaborators to support the initiative.

The central bank’s plans align with the work of the Pakistan Crypto Council (PCC), a government-backed body formed in March to facilitate the adoption of blockchain and crypto technologies.

In a statement released Wednesday, PCC CEO and Minister of State for Blockchain and Crypto, Bilal bin Saqib, confirmed that the cabinet had approved the Virtual Assets Act 2025. The law is expected to establish an independent regulatory authority tasked with licensing and supervising the crypto sector.

Among its broader objectives, the PCC is exploring bitcoin mining projects powered by excess national energy supplies and is pursuing the creation of a government-led Strategic Bitcoin Reserve.

The council has also enlisted Binance founder Changpeng Zhao as a strategic adviser and is in discussions with US-based crypto entities, including World Liberty Financial, a firm reportedly linked to US President Donald Trump.

While the SBP clarified in May that virtual assets are not classified as illegal, it has advised banks and financial service providers to refrain from dealing in crypto until formal regulations are enacted.

“There are inherent risks, but also significant opportunities in this rapidly evolving space,” Ahmad said. “We must strike a balance, managing the risks without missing the potential that innovation brings.”