The State Bank of Pakistan (SBP) has reportedly selected a Japanese company to develop the country’s central bank digital currency (CBDC), following the federal government’s formal approval of the Virtual Assets Act 2025 last month.
Japanese news outlet Nikkei Asia reported on Tuesday that Soramitsu, a Japan-based blockchain technology developer, is working with the SBP on a pilot program to introduce a CBDC in Pakistan.
This development follows the announcement by SBP Governor Jameel Ahmad that the central bank is preparing to launch a pilot project and finalize legislation to regulate digital assets.
Approved on July 9, the Virtual Assets Act establishes the Pakistan Virtual Asset Regulatory Authority (PVARA), an independent federal body responsible for licensing and overseeing institutions dealing with virtual assets.
Under the new law, all service providers operating in the sector will be required to obtain licenses, meet registration and compliance standards, and adhere to strict reporting requirements.
The legislation also introduces a regulatory sandbox to encourage responsible innovation, allowing new technologies and business models to be tested under regulatory supervision.
In addition, PVARA will have the authority to issue “no-action relief” letters under specific circumstances, granting limited exemptions while ensuring accountability.
To ensure compliance with Islamic financial principles, a Shariah Advisory Committee will be established to guide the authority on the Shariah status of virtual asset products. Licensed institutions offering Islamic financial services will be required to follow the committee’s rulings.
The Act further provides for the creation of a Virtual Assets Appellate Tribunal to hear appeals against PVARA’s decisions. The tribunal will operate independently and will include experts in law, finance, and technology.
Pakistan’s move toward a digital currency began in 2021, when the SBP included CBDC development in its banking digitization roadmap. The initiative has accelerated in recent months, with bankers, currency dealers, and experts recently convening in Islamabad to discuss the future of virtual currencies.
