Soramitsu, a Japan-based blockchain developer, will help the government of Pakistan build its central bank digital currency effort, after having been involved in similar projects. The Pakistan CBDC pilot is being implemented with offline payment capabilities in mind.
Japan-Based Soramitsu Enlisted to Create Pakistan CBDC
More countries are developing their central bank digital currencies (CBDCs), bringing their payment infrastructures to the digital age. Pakistan, the 25th largest economy in the world, has enlisted the help of Soramitsu, a Japan-based leader in blockchain technology, to structure and launch a digital rupee pilot that will run on top of the company’s CBDC platform.
The digital currency will be funded with resources from the Global South Future-Oriented Co-Creation Project of Japan’s Ministry of Economy, Trade, and Industry, according to Nikkei Asia.
Soramitsu has been involved in similar endeavors before, having contributed to the development of a proof-of-concept digital currency in Papua New Guinea in January and collaborated with the Central Bank of Solomon Islands in the launch of Bokolo Cash, a Solomon Islands dollar CBDC.
While Pakistan has been exploring the possibility of issuing a national digital currency since 2019, the governor of the Central Bank of Pakistan, Jameel Ahmad, revealed that the institution was preparing to launch a pilot for such a currency in July. He also highlighted that the regulation for digital assets was being finalized.
One of the key requirements of the Pakistani CBDC would be the ability to operate in cash-like conditions, enabling citizens to transact with digital money in areas where the internet is unavailable. If the project is successful, it could be an example for countries facing similar challenges in distributing cash to these regions.
In addition to a national digital currency, Pakistan has recently signaled interest in establishing a national bitcoin policy. Pakistani authorities recently met with El Salvador’s President Nayib Bukele to examine his experience in the country’s bitcoin journey. Pakistan has also expressed interest in establishing a national bitcoin reserve and allocating 2,000 megawatts to crypto mining and AI data infrastructure activities.
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