Pakistan’s Central Bank Accelerates Digital Future: CBDC Pilot Imminent

Breaking the bureaucratic mold—Pakistan's central bank is charging ahead with a digital currency pilot, joining the global CBDC race.

Why now? The State Bank of Pakistan isn't just catching up—it's strategically positioning itself in a world where even laggard economies are realizing cash is becoming legacy tech.

The blueprint: While details remain scarce, expect a phased rollout targeting interbank settlements first—because when has a central bank ever prioritized retail users over institutional players?

Watch the domino effect: If successful, this could pressure other South Asian central banks to fast-track their own digital currency plans—or risk being left holding stacks of worthless paper.

Final thought: Another CBDC enters the arena. Will it actually innovate, or just digitize the same old financial repression? Place your bets.

TLDR

• Pakistan’s central bank is preparing to launch a pilot program for a central bank digital currency.
• The State Bank of Pakistan is finalizing the infrastructure and legal framework for the digital currency rollout.
• The pilot program is part of a broader strategy to modernize the financial system and adopt blockchain-based solutions.
• The government has passed the Virtual Assets Act 2025 to regulate and monitor the virtual asset industry.
• An independent regulator will be created to license and supervise crypto-related businesses across the country.

Pakistan’s central bank has finalized plans for a central bank digital currency (CBDC) pilot to modernize the financial system. The State Bank of Pakistan confirmed the pilot will soon begin following infrastructure development and legislative preparations. This initiative aligns with broader goals to integrate digital financial services and global blockchain trends.

Officials confirmed that legislation is almost ready, setting the legal foundation for VIRTUAL assets and digital currency operations. The framework includes licensing for banks and financial institutions planning to enter the digital asset space. These developments reflect Pakistan’s intention to match the pace of countries that have launched or tested similar digital solutions.

The CBDC pilot is part of Pakistan’s digital strategy, which also includes stable monetary policy, legislative reform, and international partnerships. The government is finalizing the Virtual Assets Act, 2025, to regulate digital assets and introduce oversight mechanisms. Central bank authorities say the project will proceed under defined policy guidelines to minimize risks.

Pakistan Builds Infrastructure for CBDC Pilot

The State Bank of Pakistan is building digital infrastructure that will support the rollout of its CBDC pilot in the coming months. The project includes regulatory and technical mechanisms to allow financial institutions to test and adopt digital currency tools. The bank plans to implement policies gradually to support long-term integration and economic inclusion.

This digital currency pilot supports the modernization of payments and settlement systems and increases efficiency across financial transactions. Pakistan’s central bank expects the pilot to guide future decisions on national digital currency issuance and public adoption. The pilot aims to reduce operational costs while enhancing financial security and access.

The bank intends to maintain its current monetary policy stance as the CBDC pilot proceeds. It aims to protect financial stability and ensure alignment between monetary tools and digital innovation. By doing so, the State Bank strengthens its control over inflation and liquidity, which are key for long-term planning.

Surplus Energy Explored for Crypto Mining

Pakistan’s government passed the Virtual Assets Act, 2025, establishing a regulatory authority to monitor and license crypto-related activities. This legislation supports Pakistan’s effort to manage risks and unlock the crypto industry’s economic potential. The new regulator will oversee exchanges, wallet services, and crypto-related firms under specific compliance standards.

The Pakistan Crypto Council (PCC), launched earlier this year, has helped shape virtual asset discussions and energy-use strategies for mining. The council is exploring the use of surplus energy for crypto mining to balance energy consumption and promote industry efficiency. Strategic partnerships, including Binance founder Changpeng Zhao as advisor, aim to guide crypto adoption.