Source: Pakalerts
In order to legalize digital currencies in the nation, the federal government has recommended amending the State Bank of Pakistan (SBP) Act.
The State Bank of Pakistan (SBP) Act has been subject to suggested revisions by the federal government. Allowing dual nationals to occupy important roles inside the central bank is the goal of these revisions. Additionally, they want to make the usage of digital currencies, such as Bitcoin, legal.
Finance Ministry Suggests a Number of Changes
Source: Facebook
Government sources claim that the Ministry of Law has examined roughly a dozen revisions that the Finance Ministry has suggested. The federal cabinet is being asked to approve the amendments. This is a substantial change in the way the government approaches financial policy.
The modifications make it clear that the SBP is the one issuing digital currency, allowing the central bank to manage Pakistani currency in both digital and physical formats.
SBP Will Establish a Specialty Subsidiary
A subsidiary of the State Bank of Pakistan (SBP) will be established to manage and develop cutting-edge digital payment systems. All will benefit from increased accessibility and cost efficiency as a result.
Dual nationals would no longer be prohibited from holding positions as governors, deputy governors, or non-executive directors on the board of the State Bank of Pakistan (SBP) under the proposed modifications. Although the IMF did not expressly advocate this restriction, it was implemented in January 2022 as a result of revisions influenced by the IMF.
Legal provision for the first time!
One important change is that the SBP Act now includes legal provisions for digital money for the first time thanks to the proposed revisions. With this move, the State Bank of Pakistan (SBP) departs from its traditionally cautious stance. In earlier public advisories, the SBP had issued warnings against digital currencies.
Penalties for issuing digital currency without authorization are included in the revisions. This is in an effort to better regulate the developing industry. The goal of the additional proposals is to give the SBP board more power to approve financial reports. The processes for calling board meetings are also made clearer by these ideas.
These adjustments have the potential to drastically alter Pakistan’s financial governance. They might also revolutionize the use of digital currency in Pakistan if they are accepted. It might open up new avenues for technology and economic expansion.
