According to Odaily, the Pakistani government has proposed amendments to the State Bank of Pakistan (SBP) Act, signaling a potential shift in the country's financial policy towards the legalization of cryptocurrencies. The proposed changes would empower the SBP to issue digital currency and manage the nation's currency in both physical and digital forms. Additionally, the amendments would grant the SBP the authority to conduct Central Bank Digital Currency (CBDC) operations, allowing CBDCs to function as legal tender.
The SBP also plans to establish a subsidiary to develop and operate digital payment systems. The proposed amendments include penalties for unauthorized issuance of digital currency, with fines amounting to twice the value of the illegally issued currency. Although the federal cabinet has not yet announced a timeline for approving these amendments, the changes could shift focus towards regulatory oversight and integrating digital currency into Pakistan's financial framework.
Furthermore, the amendments aim to expand the powers of the SBP board, enabling it to approve broader financial reporting and enhance governance processes. Historically, the SBP has classified cryptocurrencies like Bitcoin as illegal and has warned of the risks associated with them, particularly highlighting the lack of legal protection against financial losses due to the high volatility of cryptocurrencies.
