Pakistan Teams Up with Japan’s Soramitsu to Launch Groundbreaking CBDC Pilot
Pakistan makes a power move—partnering with Japanese blockchain heavyweight Soramitsu to test a central bank digital currency. Could this be the push CBDCs need to go mainstream?
Why Soramitsu? The firm’s tech already powers Cambodia’s quasi-digital currency. Now, it’s exporting its expertise to Pakistan’s banking sector—because nothing says 'financial innovation' like outsourcing your monetary future.
The stakes? High. If successful, Pakistan joins the elite club of nations flirting with digitized fiat. If it flops? Just another case study for crypto maximalists to smirk at.
One thing’s certain: when traditional finance finally catches up to crypto, it’ll be wearing a government-issued tracking ankle monitor.
Soramitsu Drives CBDC Rollout in Asian Countries
Soramitsu, a leading Japanese blockchain technology firm, has partnered with the State Bank of Pakistan to launch a pilot program for a digital Pakistani rupee. Supported by funding from Japan’s Ministry of Economy, Trade, and Industry under the Global South Future-Oriented Co-Creation Project, this initiative aims to address pressing financial challenges in Pakistan’s largely cash-dependent economy, Nikkei reported.
Masato Toriya, a Pakistan specialist and associate professor at Tokyo University of Foreign Studies, said, “Many transactions in rural areas are cash-based, even for wage payments, and the rate of people with bank accounts remains low.” By introducing a CBDC, the project seeks to lower the significant costs associated with cash circulation and expand financial inclusion.
Soramitsu is no stranger to pioneering CBDC technology in Asia. The company co-developed Cambodia’s Bakong, the region’s first central bank digital currency, and now embarks on its largest project to date, targeting Pakistan’s population of 250 million and an economy valued at approximately $400 billion.
The Tokyo-based firm is also innovating offline CBDC functionality, enabling users to conduct digital currency transactions via smartphones without continuous internet access. This feature could prove transformative for developing economies where connectivity remains uneven, positioning Pakistan’s pilot as a potential global model.
Pakistan’s Broader Digital Asset Strategy
SBP Governor Jameel Ahmad revealed in July that the central bank is finalizing legislation to regulate VIRTUAL assets and preparing to launch the CBDC pilot soon. Speaking at the Reuters NEXT Asia summit in Singapore, Ahmad emphasized Pakistan’s commitment to “building up our capacity on the SBP digital currency” and laying a regulatory foundation for virtual asset licensing.
In parallel, Pakistan has intensified efforts to integrate cryptocurrency into its financial ecosystem. The government-backed Pakistan Crypto Council, established in March, is promoting virtual asset adoption and exploring initiatives such as bitcoin mining powered by surplus energy. The council has also engaged with international crypto firms, including Binance and US-based entities, reflecting a strategic approach to digital asset development.
While virtual assets remain unlicensed, the SBP clarified in May that they are not illegal, urging financial institutions to await formal regulatory frameworks before engaging with such assets.
