SBP prepares to introduce digital currency

ISLAMABAD – In a major policy shift, the State Bank of Pakistan (SBP) has decided to grant virtual assets legal recognition and introduce a central bank–backed digital currency.

The development was disclosed on Wednesday during a briefing before the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla. SBP Deputy Governor Dr. Inayat Hussain confirmed that the rupee will be convertible into digital currency, enabling investors to purchase virtual assets.

This move also marks the withdrawal of the central bank’s earlier advisory that labeled cryptocurrency as illegal in Pakistan.

Senator Afnan Ullah Khan highlighted the significance of the decision, noting that Pakistanis have already invested nearly $21 billion in crypto markets.

The Ministry of Law and Justice has prepared the draft Virtual Assets Bill 2025, which will apply nationwide. Barrister Syed Shehroze, consultant to the ministry, said the bill proposes the creation of a Virtual Asset Regulatory Authority to license, regulate, and monitor virtual assets.

The authority’s board is expected to include the SBP governor, secretaries of finance, law, and IT, chairpersons of the FBR, SECP, Digital Pakistan, and the FIA’s DG. The Senate committee has also recommended that members of parliament be added to the board.