Pakistan Moving Towards to Introducing Digital Currency – 2024 Updates

Pakistan is actively working towards the launch of a central bank digital currency, with the SBP taking concrete steps to pilot and implement this new form of digital money in the near future. It appears that Pakistan is actively considering the introduction of a central bank digital currency (CBDC). The State Bank of Pakistan (SBP) has declared that it is putting together a plan of action for launching Pakistan’s first digital currency, a CBDC. While cryptocurrencies were previously banned in Pakistan in 2020, the SBP governor has expressed openness to the idea of a CBDC – digital tokens issued by the central bank and pegged to the value of the Pakistani currency. The introduction of a CBDC is seen as a way to improve financial inclusion, reduce transaction costs, increase payment efficiency, and counter the growing popularity of private cryptocurrencies in Pakistan. Gov’t knows the challenges to introduce digital currency in Pakistan. The SBP has also raised concerns about the potential misuse of crypto currencies for money laundering and terrorism financing, which is driving the push for a regulated CBDC. 

The Significance of Pakistan’s Digital Payments Expansion

The significance of Pakistan’s digital payments expansion lies in its potential to drive financial inclusion, economic growth, security, and the modernization of the country’s financial infrastructure, ultimately benefiting both businesses and individuals. Digital reforms in currency showing the personal interests of the Pakistan gov’t that is a positive sign for economy. Declaration of virtual currencies means setting the targets for future challenges to by digital reforms. Following are the key points and importance to introduce digital currency in Pakistan:

• Increased Financial Inclusion
  
  The expansion of digital payments in Pakistan is seen as a way to improve financial inclusion and bring more people into the formal financial system, especially those who were previously underserved.

• Reduced Costs and Increased Efficiency
  
  Digital payments can help reduce transaction costs, increase payment efficiency, and counter the growing popularity of private cryptocurrencies in Pakistan.

• Economic Growth and Job Creation
  
  Widespread adoption of digital payments is estimated to improve Pakistan’s GDP by 7% and create up to 4 million new jobs.

• Addressing Security Concerns
  
  The move towards digital payments is also driven by the government’s desire to stop the misuse of the financial system, especially given Pakistan’s status on the FATF grey list.

• Modernizing the Financial Ecosystem
  
  The introduction of new digital payment solutions, such as QR code payments, Pay by Link, and Tap on Phone, is aimed at revolutionizing Pakistan’s digital payments landscape and fostering a robust, safe, and competitive financial ecosystem.

• Empowering Businesses and Individuals
  
  The digital payments expansion is expected to empower micro, small, and medium enterprises (MSMEs), including those owned by women, to participate in the digital economy and future-proof their businesses.

The Most Popular Digital Payment Platforms in Pakistan

1. EasyPaisa
   
   EasyPaisa is a widely used mobile wallet in Pakistan that offers secure and convenient payment solutions. It has over 25 million registered wallets and is known for its user-friendly interface.

2. JazzCash
   
   JazzCash is another prominent mobile wallet in Pakistan, offering accessibility and user-friendliness. It is popular for its ease of use and integration with various platforms.

3. Safepay
   
   Safepay is a secure payment gateway designed for online businesses in Pakistan, known for its reliability and efficient payment processing.

4. PayPro
   
   PayPro is recognized for its quick setup and seamless integration with Shopify, making it a suitable choice for online businesses looking for efficient payment processing.

5. Tazapay
   
   Tazapay offers integration options for Shopify stores, providing a reliable payment solution for businesses.

6. Paypak
   
   PayPak is Pakistan’s first domestic payment scheme, offering secure and convenient payment options for users.

7. SadaPay
   
   SadaPay is a regulated digital payment platform in Pakistan, providing secure and efficient payment services.

8. Alfa Payment Gateway by Bank Alfalah
   
   Bank Alfalah’s Alfa Payment Gateway is a top choice for merchants in Pakistan, allowing them to collect payments from across the country. It offers benefits like digital sign-up, secure payment links, and an intuitive dashboard for businesses.