Pakistan is planning a pilot central bank digital currency (CBDC) program, central bank Governor Jameel Ahmad said today during a Reuters Next event. Separately, the government formally approved the Virtual Assets Act, which establishes a new licensing agency, the Pakistan Virtual Asset Regulatory Authority (PVARA).
Several other regulators are represented on the licensing body, including the central bank and securities regulator. The Act also establishes a regulatory sandbox. With Pakistan having experienced bouts of rampant inflation, peaking at 38% in May 2023, many consumers are attracted to cryptocurrencies. According to Chainalysis, it ranks ninth in the world in crypto adoption. The interest is less about DeFi and more in crypto exchange activity.
Governor Ahmad commented on the virtual asset legislation that “There are risks associated, and at the same time, there are opportunities in this new emerging field. So we have to evaluate and manage the risk very carefully, and at the same time not allow to let go the opportunity,” according to a Reuters report.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
