Pakistan’s government is taking steps to regulate cryptocurrencies and explore the introduction of a Central Bank Digital Currency (CBDC). The country’s Finance Minister, Ishaq Dar, recently announced that the government is working on legislation to regulate digital assets, with the goal of fostering innovation while mitigating the risks associated with cryptocurrencies. This move reflects growing global interest in creating frameworks to manage the rapidly evolving crypto sector.
In addition to regulating cryptocurrencies, Pakistan is also exploring the possibility of making a CBDC legal tender. The central bank has been conducting research on a digital rupee, which could eventually replace traditional physical currency and provide a more efficient, secure, and cost-effective alternative. The move aligns with global trends, as several countries, including China and the European Union, have been actively working on their own CBDC projects.
The regulation of cryptocurrency is seen as a way to tackle issues such as money laundering, tax evasion, and fraud, which have plagued the digital asset space. Pakistan has struggled with illegal crypto activities, and a formal regulatory framework could bring greater transparency and legitimacy to the market. By regulating crypto, the government hopes to provide clearer guidelines for businesses and investors, which could ultimately help attract investment to the sector.
The introduction of a CBDC and clearer crypto regulations could also support Pakistan’s efforts to modernize its financial system and improve financial inclusion. While the timeline for these changes remains uncertain, the government’s focus on digital finance indicates a shift toward embracing emerging technologies as part of its economic strategy.
