As a researcher with a keen interest in global finance and regulatory developments, I find the potential shift in Pakistan’s financial policy towards cryptocurrencies intriguing. Having closely followed Pakistan’s stance on digital currencies, it seems like a significant step forward from their previous categorization of cryptos as illegal tender.
Pakistan takes steps towards making cryptocurrency legal by suggesting changes to the State Bank of Pakistan (SBP) Act, indicating a transition in their monetary policy strategy.
As per an article in The Express Tribune, these amendments enable the State Bank of Pakistan (SBP) to introduce digital currency and oversee the nation’s funds in both traditional and digital formats.
The proposed modifications encompass the authority for the Central Bank (SBP) to engage in digital currency transactions, referred to as “central bank digital currencies” or CBDCs. Notably, these CBDCs would be recognized as legal tender. Furthermore, the SBP intends to create a subsidiary for the development and management of digital payment systems, according to the report.
Previously, Pakistan’s monetary authority has classified digital currencies such as Bitcoin (BTC) as unlawful money, often cautioning about potential dangers. The central bank emphasized that there are no legal safeguards for financial losses stemming from the extreme volatility of these digital assets.
According to the report, the suggested changes will impose fines that are double the worth of any illegally produced digital currencies, on those who issue these currencies without proper authorization, as a form of penalty.
Though there’s no definite timeframe shared for federal cabinet approval of these modifications, they might steer the conversation towards regulatory supervision and the incorporation of digital currencies within Pakistan’s monetary system. These amendments would broaden the powers of the State Bank of Pakistan’s board, empowering them to endorse a more extensive variety of financial documents and strengthen administrative procedures.
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2024-11-04 12:45