On November 4, the State Bank of Pakistan (SBP) dropped a major announcement: a package of policy proposals that could make digital assets, like cryptocurrencies, legal tender across Pakistan! Led by SBP Governor Jameel Ahmad, the Monetary Policy Committee (MPC) pitched amendments that would allow state banks to issue a digital currency and even penalize unauthorized issuers. If approved, this could open doors to a Central Bank Digital Currency (CBDC), creating a potential digital rupee!
These amendments also propose to allow state banks to manage digital payment services, potentially integrating blockchain for transactions like crypto buying, selling, and trading. This is a HUGE turn from the previous government stance, which leaned towards banning cryptocurrency. Earlier in 2023, former finance minister Aisha Ghaus Pasha signaled a strong anti-crypto view. But since March 2024, Muhammad Aurangzeb, Pakistan’s new finance leader, has flipped the script, moving the MPC in a more pro-crypto direction.
MORE GOOD NEWS! The MPC also announced a 2.5% interest rate cut, anticipating economic improvements. Lower food inflation, favorable oil prices, and stable gas tariffs are setting the stage for a 2.5-3.5% GDP growth target for FY25. If these crypto-friendly proposals pass, this could be a game-changer for Pakistan’s digital assets market, helping to curb illegal trading and establish safe, regulated options.
