Pakistan is teaming up with Japan’s Soramitsu to test a central bank digital currency (CBDC), marking a major step toward digitizing its cash-heavy economy. The pilot, backed by the State Bank of Pakistan (SBP), is expected to launch before the end of 2025.
Japan’s Blockchain Expertise Meets Pakistan’s Financial Goals
Soramitsu, a Tokyo-based blockchain developer known for building Cambodia’s Bakong digital currency, will lead the project with support from Japan’s Ministry of Economy, Trade, and Industry. The initiative is part of the Global South Future-Oriented Co-Creation Project, which aims to modernize financial systems in emerging markets.
Much of Pakistan’s rural economy still runs on cash — even wage payments often skip the banking system entirely. “Many transactions in rural areas are cash-based, and the rate of people with bank accounts remains low,” said Masato Toriya, an associate professor at Tokyo University of Foreign Studies. A CBDC could cut the high costs of printing and moving cash while opening the door to wider financial access.
With a population of 250 million and an economy worth around $400 billion, Pakistan represents Soramitsu’s largest CBDC project yet. The company is also testing offline payment features that would let users send and receive funds via smartphone without constant internet access — a game-changer for regions with patchy connectivity.
Laying the Groundwork for Digital Assets
SBP Governor Jameel Ahmad said in July that the central bank is finalizing laws to regulate virtual assets and prepare for the CBDC rollout. Speaking at the Reuters NEXT Asia summit, Ahmad stressed the importance of building the SBP’s capacity to manage a digital currency and setting a licensing framework for crypto businesses.
Pakistan is also broadening its digital asset strategy. The government-backed Pakistan Crypto Council, formed in March, is working to promote adoption and explore new opportunities, including bitcoin mining powered by surplus energy. It has already opened discussions with global crypto players such as Binance and US-based firms.
While cryptocurrencies are not yet licensed, the SBP clarified in May that they are not illegal. For now, financial institutions are advised to wait for formal regulations before engaging with virtual assets.
