Pakistan to Test Digital Currency in Partnership with Japanese Firm Soramitsu
According to a report by Nikkei Asia, Japanese blockchain company Soramitsu is working with the State Bank of Pakistan (SBP) to launch a pilot program for a central bank digital currency (CBDC) later this year.
The upcoming digital Pakistani rupee will operate on Soramitsu’s CBDC platform, funded by Japan’s Ministry of Economy, Trade, and Industry under its Global South Future-Oriented Co-Creation Project.
Last month, SBP Governor Jameel Ahmad stated that the central bank is “building up our capacity” for introducing a digital currency.
Experts believe the move could benefit Pakistan’s largely cash-based rural economy. Masato Toriya, an associate professor at Tokyo University of Foreign Studies, noted that many people in rural areas do not have bank accounts, and a CBDC could lower the costs associated with cash handling and distribution.
Soramitsu has previously implemented similar projects, such as Cambodia’s Bakong in partnership with the National Bank of Cambodia, as well as CBDC pilots in Papua New Guinea and the Solomon Islands. In January, representatives from SBP and Soramitsu visited Cambodia’s central bank to learn from its experience.
With a population of around 250 million and a GDP of about $400 billion, Pakistan represents Soramitsu’s most ambitious CBDC project so far — significantly larger in scale than its past initiatives.
The project also aligns with Pakistan’s growing economic cooperation with China through the China-Pakistan Economic Corridor. While China has tested its digital yuan, Pakistan’s CBDC could help ensure financial independence while benefiting from digital innovation.
To address challenges like patchy internet and electricity access, Soramitsu is also developing offline transaction capabilities for the CBDC. This will allow smartphone-based payments without internet — a solution that could become a model for other developing countries facing similar infrastructure issues.
