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Digital rupee to integrate with PRISM+ amid new crypto oversight law
ISLAMABAD, July 10 — Pakistan is moving ahead with a central bank digital currency (CBDC) pilot program as part of efforts to modernize its financial system and keep pace with the global shift toward digital finance. According to well-placed sources in the State Bank of Pakistan (SBP), the digital rupee pilot is in its final phase and will soon be rolled out to test functionality within the country’s real-time payments ecosystem.
The SBP has teamed up with technology partners to set up the digital infrastructure needed for a secure and scalable launch. Insiders say the pilot will be plugged into the PRISM+ payment system, allowing for instant, transparent transactions powered by blockchain technology.
In parallel, Pakistan has put in place the Virtual Assets Act, 2025, which establishes the Pakistan Virtual Asset Regulatory Authority (PVARA) to look after licensing and oversight of crypto-related businesses. The legal framework is designed to crack down on illicit activities and lay down clear guidelines for Anti-Money Laundering (AML), Know Your Customer (KYC), and consumer protection standards.
The initiative is also being backed by the Pakistan Crypto Council (PCC), which has been pushing for responsible digital asset adoption. The Council is exploring bitcoin mining using surplus energy and has drawn up plans for a state-managed bitcoin reserve. International advisers, including Binance founder Changpeng Zhao, have reportedly come on board to guide the broader crypto strategy.
While the digital rupee aims to cut back on cash use, bring in the unbanked population, and speed up payments, multiple challenges remain. Regulatory delays, patchy enforcement, and energy shortages could slow things down. The decentralized nature of crypto assets makes oversight harder to carry out, while privacy concerns tied to centralized control may put off some users. Experts warn that taxation and cross-border coordination need to be worked out carefully. Building public trust through awareness and education will be key to getting the system off the ground.
