News Desk: Governor Jameel Ahmad Confirms CBDC Trial and Regulatory Framework for Crypto at Reuters NEXT Asia Summit
SINGAPORE – The State Bank of Pakistan (SBP) is gearing up to pilot a central bank digital currency (CBDC) and finalize new legislation to regulate virtual assets, marking a major step in Pakistan’s broader financial sector reforms. The announcement was made by SBP Governor Jameel Ahmad at the Reuters NEXT Asia summit in Singapore.
Pakistan Embraces Blockchain and Digital Currency Trends
Governor Ahmad confirmed that the SBP is actively building capacity for a digital currency backed by blockchain technology. “We are building up our capacity on the SBP digital currency,” he said, noting that a CBDC pilot launch is expected “soon.” The upcoming Virtual Assets Act will establish a legal framework for licensing and regulating crypto and blockchain-based assets.
The move aligns Pakistan with global leaders like China, India, Nigeria, and Gulf nations that are also conducting CBDC trials to modernize payment systems and enhance financial transparency.
Virtual Assets Act 2025 to Provide Regulatory Clarity
The Pakistani government has taken a significant step with the Virtual Assets Act, 2025, signed into law by President Asif Ali Zardari earlier this year. While digital assets remain restricted for the banking sector, the SBP clarified in May that cryptocurrencies are not illegal, pending the implementation of a formal licensing framework.
“This legal foundation will allow us to manage risks effectively while exploring opportunities in this emerging space,”
Ahmad said.
Pakistan Crypto Council Leading Industry Adoption
The Pakistan Crypto Council (PCC)—a government-backed body launched in March—has been instrumental in driving innovation. The PCC plans to use surplus energy for bitcoin mining and has named Binance founder Changpeng Zhao as a strategic advisor. The Council is also in talks with global crypto firms, including World Liberty Financial, reportedly linked to former U.S. President Donald Trump.
Tight Monetary Policy Brings Inflation Under Control
On the economic front, Ahmad highlighted the impact of the SBP’s tight monetary stance. After a record high of 22%, the policy rate has been reduced to 11%. Inflation has fallen from 38% in May 2023 to just 3.2% in June 2025, averaging 4.5% in FY25 — the lowest in nearly a decade.
“We are now seeing the results of our policy through improved inflation numbers and a stronger external account,” Ahmad said.
Forex Reserves Improve, IMF Program On Track
Pakistan’s foreign exchange reserves have surged to $14.5 billion, up from less than $3 billion just two years ago. Ahmad also reaffirmed that the country’s ongoing $7 billion IMF program, running until 2027, is progressing well. The reforms include changes in fiscal management, energy pricing, and exchange rate liberalization.
“We are confident that post-IMF, Pakistan may not require an immediate follow-up program,” Ahmad added.
Pakistan’s Digital Finance Future: Balancing Innovation and Regulation
The upcoming CBDC pilot project and Virtual Assets Act signal Pakistan’s commitment to digital transformation in finance while maintaining regulatory oversight. As global financial systems evolve, Pakistan aims to stay competitive by integrating emerging technologies such as blockchain, digital currencies, and crypto assets.
