The State Bank of Pakistan (SBP) has reportedly selected a Japanese company to develop the country’s central bank digital currency (CBDC), following the government’s approval of the Virtual Assets Act 2025 last month.
The blockchain technology developer, Soramitsu, will work with SBP on a pilot program to introduce CBDC in Pakistan. The announcement came after SBP Governor Jamil Ahmed revealed plans to start the pilot and finalize regulations for digital assets.
The Virtual Assets Act, approved on July 9, establishes the Pakistan Virtual Asset Regulatory Authority (PVARA), an independent federal body responsible for licensing and monitoring virtual asset service providers across the country.
Under the new law, all service providers in the sector must obtain licenses, meet registration and compliance standards, and adhere to strict reporting requirements. The law also introduces a regulatory sandbox to encourage responsible innovation and testing of new technologies under supervision.
PVARA will have the authority to issue “no-action relief letters” under certain conditions, allowing limited exemptions while ensuring accountability. A Sharia Advisory Committee will guide the authority on the compliance of virtual asset products with Islamic finance principles.
The Act also creates a Virtual Assets Appellate Tribunal to hear appeals against PVARA decisions. This tribunal will operate independently and include experts in law, finance, and technology. Pakistan’s move aligns with similar steps taken by China, India, Nigeria, and several Gulf countries exploring blockchain-based digital payment systems.