Pakistan proposes new crypto framework to central bank rules

The State Bank of Pakistan has proposed a legal framework for the recognition of digital assets, including cryptocurrency, as official forms of currency.

If approved, the plan would allow the SBP to issue a digital currency, potentially leading to a central bank digital currency for Pakistan.

According to the Tribune, the SBP has proposed amendments to the State Bank of Pakistan Act, signaling a shift in the country’s approach to digital currencies. The proposal would legalize the use of digital currencies such as Bitcoin (BTC) as legal tender; This is a significant change from the SBP’s previous warnings against virtual currencies.

Legal tender status in Pakistan means that a currency is accepted for payment of goods, services and debts, according to the Tribune.

Oversight of SBP

The proposal also outlines a system to penalize unauthorized digital currency issuers. The proposal will integrate digital currency management into the SBP’s responsibilities, allowing the bank to oversee currency in both physical and digital form.

Additionally, the framework will allow dual nationals to serve in senior positions within the central bank, reversing the rule that previously restricted such appointments.

This shift is in line with the government’s broader economic goals, which include 2.5-3.5% GDP growth forecasts and efforts to modernize Pakistan’s financial landscape as the world increasingly turns to digital finance.