Pakistan is looking to issue its own digital currency, a tandem to the Pakistani Rupee, by 2025 at least.
The new regulatory framework for digital currencies was passed on Monday at an event that boasted luminaries such as the Pakistani Finance Minister and various State Bank of Pakistan officials. The Dawn, a local publication, was on hand to report on the details.
Following hot on the heels of the regulatory framework introduced on Monday, Jameel Ahmad said that digital currencies were more efficient. Ahmad, the State Bank Deputy Governor, also made calls to the government for increased cybersecurity awareness. He stated that Pakistani's could only take advantage of recent innovations if they felt more secure. This needed to be a priority at all levels. He also explained that the new framework would allow non-banks the ability to issue e-money for payments. They will be defined as Electronic Money Institutions, as per the name of the regulatory framework that governs the use of digital currencies in the country.
The latest innovation in Pakistan that affected consumers was bringing branchless banking into reality. The government is looking to go one step further and allow non-banks to involve themselves with the facilitation of payments. This will allow blockchain focused companies to apply for regulatory approval. It will also, in the eyes of the government, allow more people to make use of digital currencies. This will lead to greater participation in the global digital marketplace.
Jameel Ahmad praised the emergence of branchless banking, citing how they had evolved and were now providing financial services to an ever-increasing segment of the local population. Pakistan has been one of the forerunners of mobile banking solutions. The World Bank has praised the Asian country for its innovative stance. This was all born out of a desire to help as many people receive proper, regulated and legal financial services in the most efficient manner possible. Physically it has always been a problem, but the internet has helped with increasing service delivery.
Earlier this year, a Pakistani bank called Telenor Microfinance Bank, partnered with a Malaysian bank to accept remittances. This move wide widely hailed as a fantastic move both by the FATF and by the State Bank itself. The reaction by the State Bank has received praise from all corners of the global crypto industry. When a large country such as Pakistan takes blockchain seriously, it can only help with legitimizing the technology in the rest of the world.
The speed with which the framework has been introduced and implemented is another factor in Pakistan's favor as a hotbed of blockchain and cryptocurrency activity. The steady trickle of positive news coming out of the country has helped cryptocurrency on the grander stage of international finance. The FATF, an organization that is generally very wary of cryptocurrencies, praising a use of blockchain for cross-border remittances is in itself an astounding success say industry insiders.
Author: Ali Raza. Article For: Crypto-Rating.com
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