The federal government has introduced bills for the amendment of the SBP Act with the purpose to legalize digital currency like popular cryptocurrencies, for example, Bitcoin. Under the proposed amendments, the SBP Act is to provide digital currencies as legal tender through new sections in the SBP Act. It is a policy change following international steps toward the regulation of digital currency.
In terms of legal definition, it would redefine digital currency; the SBP can have direct oversight over issuing digital currency and its subsequent transactions. This is well aligned with the objective of SBP to modernize the financial infrastructure of Pakistan through the establishment of its subsidiary focused on digital payment systems. As digital transactions gain momentum, the SBP would facilitate safe regulated exchange.
In addition, the bill provides for dual nationals to be appointed to key positions in the SBP, including governor and deputy governors. This would enhance the bank’s ability to tap a more diverse talent pool for leadership positions; Finance Minister Muhammad Aurangzeb recently emphasized in a Senate meeting the need to strengthen personnel strength as part of an exercise to address talent deficit.
Besides this, there are punishments in amendments regarding the unlicensed issue of electronic money and their recovery by the courts in quadruple times than that involved. In such an action, the SBP regulatory regime would be enhanced while facilitating a systemic way towards digital finance in Pakistan while reflecting a softer attitude regarding the acceptance of cryptocurrency.
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Salaar Shah