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Pakistan to roll out digital currency

KARACHI – The federal government has decided to launch digital currency that will help saving costs incurred on printing and distribution of currency notes, it emerged on Tuesday.  

The State Bank of Pakistan (SBP) will support of the launch of digital currency and it will be issued on the guarantee of the government.

Reports said a dedicated department — Central Bank Digital Currency — has been established to conduct the cost benefits and feasibility analysis after the launch of the digital currency.

The new form of currency will not only strengthen the Pakistani rupee but also improve the economy.

The value of the digital currency will be equal to the Pakistani rupee as it is in practice in China where one unit of digital currency is equal to one Yuan.

The government has planned to gradually replace currency notes with digital currency, maintaining the ratio of 80:20. The set ration will make sure that currency notes are available if there is any uncertain situation.

The digital currency will be helpful in documenting the every transaction and implementation of the monetary policy.

The World Bank in a statement has said that the new type of currency has potential to improve efficiency of financial industry, resilience and reliability.

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