Pakistan Taps Japanese Firm for Central Bank Digital Currency Pilot
KARACHI: The State Bank of Pakistan (SBP) has brought in Japanese technology company Soramitsu to work on the country’s first central bank digital currency (CBDC), a move that signals Islamabad’s growing commitment to digital finance.
The decision comes a few weeks after the federal cabinet signed off on the Virtual Assets Act 2025, which lays the groundwork for a dedicated regulator — the Pakistan Virtual Asset Regulatory Authority (PVARA). This body will be responsible for licensing, monitoring, and enforcing compliance among businesses dealing with virtual assets.
The Japanese business daily Nikkei Asia reported that Soramitsu will collaborate with the SBP on a pilot programme before any national launch. The news follows recent remarks by SBP Governor Jameel Ahmed, who said the central bank was close to starting the trial and finalising the rules for digital asset oversight.
Under the new law, virtual asset service providers will have to be formally licensed, registered in Pakistan, and meet strict compliance and reporting requirements. The legislation also allows a regulatory sandbox where new products can be tested under watch, and gives PVARA the option to offer temporary exemptions in specific cases.
Soramitsu to work with central bank as govt enacts Virtual Assets Act 2025
To meet the country’s Islamic finance requirements, a shariah advisory committee will advise the regulator on which products comply with religious principles. Firms offering Islamic financial services will be expected to follow its guidance. There’s also provision for a dedicated tribunal to hear appeals against PVARA’s decisions, staffed with specialists in law, finance, and technology.
Pakistan’s interest in a CBDC isn’t new. The idea first appeared in the SBP’s 2021 digitisation roadmap, but discussions have picked up pace this year. Just weeks ago, senior bankers, currency dealers, and financial experts met in Islamabad to assess how digital assets might fit into the existing system.
With this move, Pakistan joins the ranks of China, India, Nigeria, and some Gulf states, all of which are running controlled pilots of digital currencies. While global enthusiasm for blockchain-based payment systems is growing, many central banks still see full adoption as a step to be approached with caution.
Published in Daily Pak, August 13th, 2025
