Islamabad — In a significant move towards financial digitisation, the State Bank of Pakistan (SBP) is partnering with Soramitsu, a leading Japanese blockchain technology company, to launch a central bank digital currency (CBDC) pilot later this year, according to a report by Nikkei Asia.
The pilot project, aimed at introducing a digital Pakistani rupee, will run on Soramitsu’s established CBDC platform and is funded through Japan’s Global South Future-Oriented Co-Creation Project, overseen by the Ministry of Economy, Trade and Industry.
Tackling Cash Dependency in Pakistan
Large parts of rural Pakistan remain dependent on cash for everyday transactions, including wage payments, with low rates of bank account ownership, explained Masato Toriya, Associate Professor at Tokyo University of Foreign Studies and an expert on Pakistan’s economy.
The CBDC initiative is designed to reduce the high costs of cash distribution and broaden access to secure, digital financial services.
Soramitsu, best known for developing Cambodia’s Bakong digital currency, describes Pakistan’s project — covering 250 million citizens and a $400 billion economy — as its largest undertaking so far.
CBDC Without Internet Access
The Tokyo-based blockchain developer is also working on offline CBDC capabilities, allowing smartphone-based transactions without internet connectivity. This could make Pakistan’s model a blueprint for other developing countries facing similar infrastructure challenges.
Last month, SBP Governor Jameel Ahmad confirmed that preparations for the CBDC pilot were underway, alongside new legislation to regulate virtual assets. Speaking at the Reuters NEXT Asia Summit in Singapore, Ahmad said the bank was “building up our capacity on the SBP digital currency” and aimed to launch the pilot soon.
Regulating the Virtual Assets Sector
According to Ahmad, the upcoming legislation will establish the licensing and regulatory framework for Pakistan’s virtual asset sector, and the SBP is already in contact with multiple technology partners to support the rollout.
In March, the government established the Pakistan Crypto Council (PCC) to encourage cryptocurrency adoption and develop a national strategy for virtual asset integration. The PCC has since explored bitcoin mining using surplus energy, appointed Binance founder Changpeng Zhao as a strategic adviser, and announced plans for a state-backed bitcoin reserve.
Talks have also taken place with major US-based crypto firms, including World Liberty Financial, a company linked to former US President Donald Trump.
While the SBP clarified in May that virtual assets are not illegal in Pakistan, it instructed banks and financial institutions to refrain from engaging with them until the official licensing framework is implement
