The Governor of the State Bank of Pakistan, Reza Bakeer, indicated that the institution is carefully studying the opportunities that are opening up to the digital currencies of the central bank.

In an interview with CNN reporter Julia Chatterley on Thursday, Bakeer noted that countries like China are “already leading” in issuing central bank digital currencies, highlighting the drive behind the central bank’s interest in the central bank’s digital currency:

“We have a two-pronged advantage: [a potential CIB issue] not only gives new impetus to our efforts to enter the economy, but second, if the central bank issues a digital currency, it allows us to make more progress in the fight against cash.” Against terrorist financing. Therefore, we are in the stage of studying it. We hope to be able to announce it in the coming months. ”
Bakir added that the central bank has already given the green light for a framework within which digital banks can start operating in Pakistan – including competitors or new banks that do not necessarily have a physical presence.

When asked about Stripe, the world’s largest fintech company, and its interest in the Pakistani market, Bakir said the company would be “very welcome”. He emphasized that Pakistan is a market with the fifth largest concentration of people in the world, a high level of technological knowledge and a relatively young population. In his view, the country “is waiting for cracks when it comes to digitization.”

Bakeer also noted that during the Coronavirus pandemic, the central bank took measures to cancel interbank transfer fees, which resulted in a 150-200% increase in mobile banking operations for the quarter ending in December 2020, compared to the previous year.

In the spring of 2019, the State Bank of Pakistan announced that it intends to issue a CBDC by 2025. Meanwhile, regional lawmakers in Pakistan are said to be pushing for more movement on the decentralized digital currency front, having recently passed a decision in the country in the northwest. The state requires the government to legalize cryptocurrency mining in the country.

Source: CoinTelegraph