Pakistan has taken a major step towards adopting digital payments nationwide, as the State Bank of Pakistan (SBP) confirmed that its central bank digital currency (CBDC) project has now entered the experimental phase.

Officials say the upcoming digital currency will make transactions possible without the need for traditional cash or even a bank account, helping to widen financial inclusion across the country.

Framework and rules in progress

According to sources, the SBP is preparing a comprehensive framework to monitor and regulate digital currency. The rules and guidelines will be finalized before the pilot launch, ensuring smooth implementation and oversight.

The project is being designed to support everyday payments, allowing users to transfer money quickly and securely using a mobile phone.

How digital wallet will work

The State Bank or licensed financial institutions will provide users with a digital wallet mobile app.

Transactions will be processed instantly using QR codes.
Registration will be done through a national identity card.
Money can be sent by simply entering another person’s number.
Government-related payments, such as taxes and fees, can also be settled through the wallet.

This system aims to provide an easy, safe, and paperless alternative to cash-based transactions.

Learning from global models

Pakistan is not alone in exploring digital currency.

Nigeria has already launched a fully operational CBDC.
China, Russia, and the United Arab Emirates are running pilot programs to test their digital currencies.

The SBP aims to learn from these international experiences while shaping a model tailored to Pakistan’s economy and financial needs.