Breaking: Japan’s Soramitsu and Pakistan Partner on Groundbreaking CBDC Pilot

Central banks just got a crypto wake-up call.

Japan's blockchain powerhouse Soramitsu is teaming up with Pakistan's central bank to test-drive a digital rupee—because apparently, printing physical money is so 20th century.

The pilot could give Pakistan's struggling economy a high-tech lifeline—or become another bureaucratic blockchain experiment that goes nowhere. Either way, bankers get to pad their resumes with 'Web3 experience.'

Watch this space: if successful, this could spark a CBDC domino effect across emerging markets. Just don't ask about the implementation costs.

Pakistan Moves Toward Digital Currency

Funding for the project comes from Japan’s Ministry of Economy, Trade, and Industry under the Global South Future-Oriented Co-Creation Project to fix financial challenges in Pakistan.

Soramitsu is also introducing offline features that allow people to make transactions on smartphones without continuous internet access, a feature that could be particularly useful in areas with poor connectivity.

The State Bank of Pakistan (SBP) is preparing regulations to oversee digital currencies. Governor Jameel Ahmad said the central bank is finalising rules and preparing to launch the pilot soon, while ensuring proper regulation for VIRTUAL assets.

Pakistan has also set up the Pakistan Crypto Council to explore cryptocurrency projects, including bitcoin mining using surplus energy. Recently it sealed a partnership with El Salvador to explore how crypto can be used for various solutions in Pakistan. 

However, virtual currencies remain unlicensed in Pakistan, but are not banned. And investors have been told to wait for formal rules before participating.

If this project is successful, the digital currency pilot could help Pakistan rely less on cash, lower transaction costs. Additionally, it will make banking services easier to use, and may also serve as a model for other countries in the region looking to adopt central bank digital currencies.

Also Read: US, Allies Dismantle BlackSuit, Grab $1M in crypto Assets