- The State bank of Pakistan has signed in new laws for Electronic Money Institutions to ensure that a CBDC is issued in the next three years.
- Pakistan announces new regulations to make sure that the launch of an in-house CBDC is followed by 2025.
- The regulations warrant preventive measures against terror financing and money laundering while pondering upon reporting requirements and consumer protection.
In a recent revelation, it surfaced that the State Bank of Pakistan has signed in new laws for Electronic Money Institutions. These entities are non-bank entities offering instruments related to digital payments. The new laws have been signed-in in order to ensure the timely disbursement of a CBDC in the next three years.
We all are aware of the fact that regulators worldwide see the Central Bank Digital Currencies, or CBDCs, as a method to enhance fiat potential by inheriting the financial prowess of technologies that carry the potential to power cryptocurrencies. It should be pondered upon that the World Bank assisted Pakistan in facilitating the designing of new regulations.
What’s more, to lay emphasis on the fact that the regulations warrant inhibitory measures against money laundering and terror financing while pondering upon the protection of customers and reporting requirements.
The Finance Minister of Pakistan, Asad Umar, released a statement that said utilizing EMIs in the promotion of the digital economy will help in the protection of final institutions from cybersecurity threats.
He stated that these landmark regulations serve as a testament to the commitment of the State Bank of Pakistan toward the adoption of technological advancements, openness, and digitization of the financial system.
The onset of a speedy regulatory environment puts Pakistan on the list of 100 countries that are showing active involvement in researching and launching CBDC initiatives.
Most recently, India also jumped on the home-grown CBDC bandwagon. The Reserve Bank of India made an announcement on November 22 regarding the ambitious plan to facilitate the launch of a retail CBDC pilot by the fall of 2022.
Kumail Nanjiani, a Pakistani-American actor and filmmaker Sharmeen Obaid-Chinoy, recently launched the charity Bitcoin Soul Bound Token NFTs in order to aid the victims of the dreaded Pakistan floods.