The government has decided to launch digital currency in a bid to save currency printing and distribution costs.
The digital currency will also help in appreciating rupee value, improving the economy, and making extensive financial transactions.
The value of the digital currency will be on par with the Pakistani rupee like a unit of Chinese digital currency, which is equal to one Chinese Yuan.
Supported by the State Bank of Pakistan, the Pakistani digital currency will be issued on the government’s guarantee like currency notes. The SBP has started working on introducing the digital currency and it is getting the services of the experts.
A dedicated department — Central Bank Digital Currency — is conducting the cost benefits and feasibility analysis of the digital currency for smooth transactions after its launching.
The government wants to gradually replace currency notes with digital currency but also wants to keep the digital currency and currency notes in parallel with the ratio of 80:20 so that in case of any unforeseen situation, an alternate in the form of currency notes is available.
The digital currency will also save expenses incurred on printing of currency notes, distributing them into different cities, and destroying old notes. Besides, every transaction made through digital currency will be documented, which will help enforce monetary policy effectively.
Digital currency also has a huge potential to foster cross-border trade and investment, while providing unbanked individuals with access to financial services.