Pakistan mulls CBDC for women amid concerns of financial abuse

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Pakistan’s finance minister, Muhammad Aurangzeb, shared at the World Economic Forum that Pakistan is considering the launch of a central bank digital currency (CBDC) to modernize financial transactions and improve accessibility, particularly for marginalized groups like women. In Pakistan, women often face challenges with cash-based systems as male family members may take their cash. Aurangzeb expressed, “The government gives cash to poor women in Pakistan. Women say that male family members take the cash from them. They want the cash through a digital wallet instead” (Samaa TV).

As a researcher studying Pakistan’s economic landscape, I’ve come across an intriguing development. The nation’s finance minister has announced that they are considering launching a central bank digital currency (CBDC). This digital currency is intended to provide women with greater financial empowerment and address issues of financial abuse in the country.

Pakistan is considering the introduction of a central bank digital currency (CBDC) as part of its efforts to update financial transactions and enhance inclusivity and safety, especially for disadvantaged communities like women, who often encounter difficulties using conventional cash methods.

At the World Economic Forum (WEF), Pakistan’s finance minister Muhammad Aurangzeb shared that the country is contemplating the introduction of Central Bank Digital Currencies (CBDCs). He raised this topic to alleviate worries over cash being monopolized by dominant male family members, as reported by Samaa TV, a major news outlet in Pakistan.

“I’ve gathered information indicating that the Pakistani government is distributing funds to impoverished women. However, these women have expressed concerns that male family members are interfering with their access to this financial aid. To address this issue and ensure greater autonomy for the recipients, an option would be for the government to explore the implementation of digital wallets, enabling women to securely manage their own funds.”

Muhammad Aurangzeb

In the aftermath of publicly endorsing the government’s efforts to boost the economy, Aurangzeb pointed to enhanced tax revenues and a shrinking current account deficit as signs of advancement.

As a crypto investor, I’ve been keeping an eye on Pakistan’s plans to enter the world of central bank digital currencies (CBDCs). For some time now, they have been deliberating over potential use cases for their own digital currency. In the sweltering heat of July 2023, the State Bank of Pakistan made an official announcement, revealing their intention to accelerate the development process of a digital Pakistani rupee. With hopes pinned on its launch by 2025, the timeline for this ambitious project remains elusive and undisclosed as of now.

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2024-04-29 12:46