The State Bank of Pakistan (SBP) is on the cusp of launching a pilot project for a central bank digital currency (CBDC) as it finalizes new legislation to regulate the country’s virtual assets sector, Governor Jameel Ahmad revealed Wednesday at the Reuters NEXT Asia summit in Singapore.

Governor Ahmad stated that the SBP is “building up our capacity on the central bank digital currency” and expressed optimism that a pilot rollout would take place in the near future. He emphasized that the forthcoming law will establish a framework for licensing and regulating virtual assets, noting that the central bank is actively collaborating with several technology partners to ensure a robust regulatory environment.

“While there are inherent risks in this rapidly evolving space, there are also significant opportunities,” Ahmad said. “Our approach is to carefully assess and manage these risks without missing out on the potential benefits.”

The move comes as Pakistan’s government formally enacts the “Virtual Assets Act, 2025,” following approvals from the Federal Cabinet, Prime Minister, and President Asif Ali Zardari. The new law is expected to provide much-needed clarity and oversight for the burgeoning crypto and digital finance sectors in the country.