SBP expects e-Money to help “promote financial inclusion and reduce corruption and inefficiency.”
The State Bank of Pakistan (SBP), also known as Pakistan’s central bank, has reportedly signed laws for Electronic Money Institutions (EMIs) to ensure that central bank digital currency (CBDC) is launched in 2025.
According to a report shared by the news portal Arab News, the new regulations were designed in collaboration with the World Bank.
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Apart from defining the time frame to launch Pakistan’s CBDC, the regulations overview anti-money laundering and counter-terror financing measures, as well as consumer protection, complaint handling and outsourcing activities.
Based on the news report, EMIs are certain non-bank institutions which will receive a green light from SBP to “issue e-Money for the purpose of digital payments.”
When talking about the new regulations, financial advisory firm’s Alpha Beta Core CEO Khurram Shehzad, stated:
The launch of e-Money regulations…is a key landmark in our FinTech space. This way, Fintechs have been empowered to open and manage accounts themselves. This day is going to mark the inflection point for digital payments in Pakistan. We need this sort of speed and regulatory environment to set the ground for our FinTechs to flourish.
The Arab News report emphasized that financial experts called the initiative a “landmark in FinTech space.” Moreover, experts added that by implementing regulations, Pakistan will become one of the few countries in the world adopting e-Money.
Regarding the launch of e-Money, State Bank of Pakistan spokesperson Abid Qamar stated.
Our currency will remain the same, but as opposed to existing online payment services — where there is the backing of any financial institution — there will be no financial institution which we are going to bring in.
The State Bank of Pakistan believes that the launch of e-money will help “promote financial inclusion and reduce corruption and inefficiency.”