The State Bank of Pakistan (SBP) yesterday presented a set of policy suggestions that, if implemented, would legitimize digital assets such as cryptocurrencies as legal tender across the country.
Under the leadership of SBP Governor Jameel Ahmad, the Monetary Policy Committee (MPC) proposed changes to its current policy that would allow state-owned banks to issue digital currency. In addition, penalties would be put in place for digital currency issuers operating without proper approval.
While these changes are still subject to government approval, their implementation could lead to the introduction of a central bank digital currency (CBDC), which would essentially be a government-backed digital version of the Pakistani rupee.
The report also mentions that state-owned banks could be given permission to process digital payment services.