The State Bank of Pakistan (SBP) has proposed a new regulatory framework to formally recognize digital assets, including cryptocurrencies, as legal currency in Pakistan.
If implemented, this framework would allow the SBP to issue its own digital currency, potentially leading to a central bank digital currency (CBDC) for the country. This proposal marks a significant change from the SBP’s earlier stance, which discouraged the use of virtual currencies. Under the new plan, digital assets like Bitcoin could gain legal tender status, making them accepted forms of payment for goods, services, and debt settlement in Pakistan.
The framework would also grant the SBP authority to regulate digital currency issuers and enforce penalties on unauthorized entities, strengthening oversight of digital transactions alongside traditional currency management.
Additionally, the proposal includes a policy shift allowing dual nationals to hold senior roles within the central bank, reversing previous restrictions. These changes support the government’s wider economic goals, including projected GDP growth of 2.5–3.5% and modernization of Pakistan’s financial system in an increasingly digital global economy.