Governor of the State Bank of Pakistan Reza Bagher suggested that the institution carefully study the possibilities digital currencies open up for the central bank.
In an interview with CNN reporter Julia Chatterley on Thursday, Baker noted that countries such as China “already show the way” when it comes to issuing the central bank’s digital currencies, explaining the reasons behind the central bank’s interest in the central bank’s digital currencies:
“We have a double advantage: [the potential issuance of digital currency by the central bank] not only gives further impetus to our attempt to expand access to financial services, but secondly, if the central bank issues digital currency, it allows us to create more progress. in our fight against money laundering. To combat the financing of terrorism. Thus, we are on stage to study it. We hope to announce this in the coming months. ”
Baker added that the central bank has already given the green light for the framework digital banks can start operating in Pakistan – among them competing banks or new banks that do not necessarily have a physical presence.
Asked about Stripe, the world’s largest fintech company, and its interest in the Pakistani market, Baker said the company would be “very welcome.” He stressed that Pakistan is the fifth largest market in the world with a high level of technological expertise and a relatively young population. The country, in his view, “is waiting for the explosive growth of digitization.”
Backer also noted that during the coronavirus pandemic, the central bank took action to abolish interbank transfer fees, which resulted in a 150-200% increase in mobile banking for the quarter ended December 2020, compared to the previous year.
In the spring of 2019, the State Bank of Pakistan again announced that it intends to issue a central bank digital currency by 2025. At the same time, regional Pakistani legislators have reportedly also called for further movement on the decentralized digital currency front, with a recent decision in the northwest requiring the government to legalize cryptocurrency mining in the country.