Pakistan CBDC pilot is set to launch a groundbreaking pilot program for a central bank digital currency (CBDC) in 2025,in collaboration with Japan’s blockchain firm Soramitsu.Supported by funding from Japan’s Ministry of Economy,Trade and Industry under the Global South Future Oriented Co Creation Project,the pilot aims to modernize financial access and cut down hefty cash handling costs.
Why This Matters for Pakistan
With an estimated 250 million population and a $400 billion economy,Pakistan is Soramitsu’s most ambitious CBDC undertaking yet.Extensive rural reliance on cash and low bank account penetration have resulted in high costs of cash distribution challenges the CBDC pilot hopes to address.
Soramitsu’s Role & Offline Capabilities
Soramitsu brings experience developing Cambodia’s Bakong system and CBDC pilots in the Pacific islands.A standout feature of the project:offline transaction support,enabling smartphone based CBDC usage even without internet connectivity ideal for connectivity limited regions.
Regulation & Institutional Backing
At the Reuters NEXT Asia summit,SBP Governor Jameel Ahmad confirmed that legislation to regulate virtual assets is in its final stage,paving the way for the CBDC pilot to proceed and laying a regulatory foundation for virtual asset licensing.
Meanwhile,the Pakistan Crypto Council (PCC) established in March is advancing broader crypto initiatives,such as exploring bitcoin mining using surplus energy and appointing Binance founder Changpeng Zhao as a strategic adviser.The council is also considering a state run bitcoin reserve and has held talks with U.S.crypto firms.
Economic Potential & Strategic Value
Project URAAN,Pakistan’s digital rupee initiative,will leverage Soramitsu’s R3 Corda platform to enable programmable features like conditional or scheduled payments,smart contracts and integration with welfare and payment systems.These capabilities make the CBDC a powerful tool for financial inclusion and efficiency.
The SBP estimates that over Rs 28 billion in annual cash management costs could be saved.Moreover,the digital rupee may interface with RAAST,Pakistan’s real time payment system,to improve transparency and bolster remittance flows to the 38 million remittance recipients across the country.
Challenges to Watch
Despite its promise,the pilot faces hurdles: digital literacy and internet access in rural areas remain low,potentially hindering CBDC uptake even with offline features.On the regulatory side,the success of the digital rupee hinges heavily on the effectiveness and clarity of the PVARA governance framework under Pakistan’s Virtual Assets Act and Digital Currency Regulatory Framework.
What’s Next
| Area | What to Watch |
| Pilot Timeline | Expected rollout by end of 2025 likely in select regions or sectors initially. |
| Performance Metrics | Adoption rates,reduction in cash related costs,offline usage effectiveness and integration with welfare or remittance systems. |
| Broader Adoption | Potential to serve as a model for other emerging markets confronting similar infrastructure and financial inclusion challenges. |
Conclusion
Pakistan’s CBDC journey driven by Soramitsu’s tech expertise and regulatory readiness is a significant stride toward financial modernization.If successful it could set a precedent for integrating programmable digital currencies in developing economies plagued by cash inefficiencies and limited access.Your readers can watch closely as this pilot unfolds potentially redefining how payments and financial inclusion evolve in South Asia and beyond.