In a bid to streamline financial transactions and cut costs related to printing and transporting physical currency, the government of Pakistan has made the decision to introduce a digital currency. This strategic move is anticipated to not only enhance the value of the Pakistani rupee but also give a significant boost to the country’s economy.
Much like other digital currencies, the value of this new digital version will be at par with the traditional Pakistani rupee. For instance, one unit of the digital currency will be equivalent to one Pakistani Rupee. The State Bank of Pakistan (SBP) is taking the lead on this initiative, with full government backing to ensure the digital currency is as secure and reliable as physical money. The SBP has already initiated the process of developing the digital currency in collaboration with experts in the field.
A dedicated department known as the Central Bank Digital Currency has been established to thoroughly assess the costs and benefits of this transition and ascertain its feasibility. The government’s plan is to gradually phase out paper money in favor of digital currency, while still maintaining the availability of both forms of currency. It is projected that around 80% of transactions will be conducted digitally, while the remaining 20% will involve paper money, providing a balanced approach.
This shift towards digital currency is expected to yield significant savings in terms of currency production and distribution costs. Additionally, every digital transaction will be meticulously recorded, offering the government a valuable tool for more effective economic management.
