The State Bank of Pakistan (SBP) has confirmed that its central bank digital currency (CBDC) project has entered the trial phase.

Officials announced that this upcoming digital currency will facilitate transactions without the need for transitional cash or a bank account, aiming to enhance financial inclusion across the country.

To ensure effective regulation and oversight, the SBP is developing a comprehensive framework for the digital currency.

Rules and guidelines will be finalised prior to the pilot launch to guatantee smooth implementation.

The digital currency is designed to support everyday payments, allowing users to transfer money quickly and securely via mobile phones.

The system will operate through a mobile wallet app provided by the State Bank or licensed financial institutions. Transactions will be processed instantly using QR code and registration will require a national identity card.

Users will be able to transfer money by entering the recipent’s phone number and government related payments such as taxes and fees can also be made through the wallet.