According to a Pakistani media outlet, the country’s central bank has plans to develop a digital currency over the next few years. The report claims that Pakistan has officially announced their plans to have a functioning currency by the year 2025. This would make Pakistan one of the first countries to officially recognize and implement a government-issued “e-currency”. It is important to recognize that many countries like China have banned the use of Bitcoin and other crypto currencies. While other countries are allowing the currency to be used, governments aren’t making claims to implement their own digital currency.
Converting the Pakistani Rupee into digital form.
Jameel Ahmad is the Deputy Governor for Pakistan’s State Bank. He recently gave a speech about the regulations that will govern non-bank entities and their handling of “e-money”. These Electronic Money Institutions will be under strict oversight by the Pakistani government. During his speech, Jameel Ahmad explained how digital currency operates in a more efficient manner than tangible bills. Ahmad also spoke about the importance of cybersecurity and called on the Pakistani government to prioritize this form of protection. In light of all the recent innovations in the crypto industry, Ahmed realizes the importance of enhancing cybersecurity in this field.
The government of Pakistan has given its officials a six-year window for developing an “e-rupee”. Fortunately, the government will also be encouraging private companies to build and use digital solutions until the currency is complete in 2025. Ahmed made the audience aware of this policy during his speech. He reported that the government of Pakistan is hoping to foster a culture of digital commerce where electronic transactions are supported and encouraged at the international, national, and regional levels. The government will attempt to raise awareness about the world of e-commerce through targeted awareness campaigns.
Pakistan has had a history of financial innovations.
The move towards an “e-currency” isn’t Pakistan’s first technological and financial innovation, according to local news outlet the Dawn. In recent years, the government of Pakistan legalized the use of web banks, also known as “branchless banking”. The next logical step would be allowing these non-banks to handle payments like normal institutions. This would help to establish a framework for companies that use blockchain solutions to obtain regulatory approval. The Pakistani media outlet plans to release a digital version of the rupee within the next few years. Not many details have been released about this development, however,
Pakistani media outlet
Major countries throughout the world are moving in the direction of a cashless system. During his speech, Ahmad talked about the successes behind branchless banking. Since the legalization of this form of banking, several branchless providers have developed and are currently offering excellent services to a larger percentage of the Pakistani population. Pakistan was actually ahead of the curve when it came to mobile banking innovation. The country received some applause from the World Bank for their solutions.
Blockchain solutions is a rapidly growing industry that can provide the necessary solutions to keep digitized currencies transparent and efficient. Systems that operate without using blockchains are more likely to be corrupted and are wholly inferior. The Pakistani media outlet clearly indicates this problem. There are millions, if not billions, of Bitcoin dollars that are counterfeit. Without the proper blockchain solutions, the current fiat system has no way of indicating what currencies are legit and which are not. It is assumed that 1 out of every 10,000 dollars has been faked or corrupted.
The Central Bank of Pakistan announced their plan to use blockchain solutions for remittances that are sent from Malaysia. This good news will help the bank ensure that the money is real.