Introduction
As global interest in blockchain-based payments accelerates, Pakistan’s digital currency project is entering its defining phase. In July 2025, the State Bank of Pakistan (SBP) confirmed that it is preparing a pilot launch of a central bank digital currency (CBDC) a historic move that could transform the country’s financial landscape.
The Virtual Assets Act 2025 and the creation of a new regulatory body, the Pakistan Virtual Asset Regulatory Authority (PVARA), signal that Pakistan is ready to join nations like China, India, and Nigeria in exploring digital currencies.
So, what does this mean for Pakistan’s economy, its citizens, and the banking sector? Let’s unpack how the CBDC Pakistan project could reshape the nation’s financial future.
Pakistan’s Digital Currency A Step Toward a Cash-Lite Future
Governor Jameel Ahmad announced that the SBP is “building up our capacity on the central bank digital currency” and aims to roll out a pilot soon. This move aligns with Pakistan’s wider effort to modernise its financial system and reduce reliance on paper money.
What Is Digital Currency in Pakistan?
A digital currency is an electronic form of national money, issued and backed by a central authority such as the SBP. Unlike cryptocurrencies such as Bitcoin, CBDC is state-regulated and fully legal tender, enabling secure and transparent transactions through official banking channels.
Key advantages include:
- Faster and cheaper local and cross-border payments
- Reduced corruption and unrecorded cash flows
- Increased financial inclusion for unbanked citizens
- Stronger monetary policy control for the SBP
The concept mirrors other initiatives like India’s Digital Rupee and China’s e-Yuan, proving that Pakistan is not far behind in embracing fintech innovation.
The Virtual Assets Act 2025 Regulating the Crypto Ecosystem
In July 2025, Pakistan’s government formally approved the Virtual Assets Act 2025, establishing the independent Pakistan Virtual Asset Regulatory Authority (PVARA).
Key Functions of PVARA
- Licensing and regulation of virtual asset service providers
- Monitoring crypto transactions to prevent illicit finance
- Setting transparency and compliance standards in line with the Financial Action Task Force (FATF)
- Overseeing Shariah compliance through a dedicated advisory committee
This law legitimises the broader digital currency business in Pakistan, clarifying that virtual assets are not illegal but must operate under strict licensing.
Key Takeaway
By introducing the Act, Pakistan is balancing innovation with security, ensuring that blockchain technology develops responsibly while encouraging local and foreign investment.
How the CBDC Pilot Will Work
The State Bank of Pakistan digital currency pilot will test the system’s stability and security before nationwide rollout.
Core Objectives
- Integrate FinTech Solutions: Partnering with local tech firms for digital ledger implementation.
- Establish Secure Transactions: Using blockchain for traceability and fraud prevention.
- Enhance Cross-Border Trade: Simplifying remittance flows and foreign exchange settlements.
- Promote Financial Inclusion: Reaching citizens without bank accounts via mobile wallets.
The pilot builds on efforts by the Pakistan Crypto Council (PCC), which has worked on virtual asset awareness and strategic projects like a state-run Bitcoin Reserve and blockchain education.
Expert Insight
According to Governor Ahmad,
“There are risks associated, and at the same time there are opportunities in this new emerging field. We must evaluate and manage risk carefully while not letting go of the opportunity.”
Economic Impact and Future Prospects
1. Improved Monetary Control
A CBDC gives the SBP real-time data on money flows, helping control inflation and interest rates effectively.
2. Transparency and Anti-Corruption
Blockchain transactions reduce tax evasion and money laundering by making financial activity traceable.
3. Support for Pakistan’s IMF Programme
By embracing digital finance, Pakistan strengthens its global credit image, helping meet reform targets under the IMF agreement running through 2027.
4. FinTech Innovation and Employment
Startups working on digital currency exchange in Pakistan will see growth opportunities in wallets, cybersecurity, and blockchain development.
5. Alignment with Global Trends
Countries like UAE and Saudi Arabia are testing CBDCs; Pakistan’s entry keeps it regionally competitive and digitally relevant.
Challenges to Implementation
While the future of digital currency in Pakistan looks promising, some key obstacles remain:
- Cybersecurity Risks: Need for strong encryption and data protection.
- Public Awareness: Educating citizens about safe digital transactions.
- Bank Integration: Traditional banks must adapt to CBDC payment systems.
- Shariah Compliance: Ensuring Islamic finance alignment through the new advisory committee.
To address these, PVARA is introducing a regulatory sandbox a controlled environment where new digital currency solutions can be tested under official supervision.
How Pakistan Compares to Other Countries
| Country | Digital Currency Status | Pilot Year | Notable Feature |
| China | e-CNY in circulation | 2020 | First major CBDC pilot |
| India | Digital Rupee testing phase | 2022 | Retail and wholesale CBDC |
| Nigeria | e-Naira in use | 2021 | Focus on financial inclusion |
| UAE | mBridge CBDC pilot | 2024 | Cross-border payments |
| Pakistan | Preparing CBDC pilot | 2025 | Under Virtual Assets Act 2025 |
Key Takeaway
Pakistan joins the ranks of forward-looking economies ready to embrace digital currency as a tool for economic growth and financial transparency.
Practical Tips for Pakistanis Preparing for Digital Currency
1. Stay Informed
Follow official announcements from the State Bank and PVARA for verified news on digital currency rates in Pakistan and future usage guidelines.
2. Learn Digital Wallets
Understand how to create and secure a digital wallet before the CBDC rolls out.
3. Avoid Unlicensed Platforms
Only trade or transact through licensed digital currency exchangers in Pakistan to protect your assets.
4. Explore Career Opportunities
Blockchain technology will create new roles in finance, IT, and policy an exciting future for Pakistan’s youth.
5. Encourage Local Adoption
Support businesses that accept digital payments and be part of the transition toward a cash-lite Pakistan.
Pakistan stands at the edge of a digital monetary revolution
With the CBDC Pakistan pilot, the Virtual Assets Act 2025, and PVARA’s formation, the country is finally building a regulated, innovation-friendly digital finance ecosystem.
The success of Pakistan’s digital currency will depend on how well regulators, banks, and citizens collaborate to embrace this new era of finance. If executed effectively, it can improve financial stability, boost global confidence, and open fresh doors for fintech growth.
FAQs
What is Pakistan’s digital currency?
It is a central-bank-issued electronic currency called CBDC, regulated by the State Bank of Pakistan to enable secure digital transactions.
Is digital currency legal in Pakistan?
Yes. Under the Virtual Assets Act 2025, digital currency and virtual assets are legal but require licensing and regulatory oversight.
When will Pakistan launch its digital currency?
The SBP plans to begin a CBDC pilot in 2025, followed by a national rollout once testing is complete.
How can I buy digital currency in Pakistan?
You can trade through licensed digital currency exchangers once the framework is operational. Avoid unregistered platforms.
What is the future of digital currency in Pakistan?
The CBDC could redefine financial access and transparency, empower citizens and support Pakistan’s journey toward a digital economy.
Follow for HelloSalam weekly updates on Pakistan’s digital economy.
