The State Bank of Pakistan (SBP) has officially rescinded its previous advisory that deemed cryptocurrency illegal. This was confirmed by the central bank’s Deputy Governor during a meeting with the Senate Standing Committee on Finance on Wednesday. This development marks a significant move towards shaping Pakistan’s digital asset landscape as lawmakers continue to meticulously review the Virtual Asset Bill.
Advisory Withdrawn, Digital Currency Planned
The SBP Deputy Governor clarified that the central bank will now be authorized to issue its own Central Bank Digital Currency (CBDC), which will have a value equivalent to one Pakistani rupee. He explained that money held in bank accounts will also be considered digital currency, with the only difference being the method of use. The Law Secretary briefed the committee that crimes linked to crypto trading will fall under anti-money laundering (AML) laws.
Opposition to a $10,000 Holding Limit
During the meeting, committee members opposed the proposed $10,000 cap on digital currency holdings, arguing that such a limit would restrict investors and traders. Instead, senators suggested a more inclusive strategy to develop Pakistan’s digital economy. A proposal was also floated to ensure that members of the proposed Crypto Authority must have a minimum of five years of relevant experience. Lawmakers emphasized the need to include more young professionals in the authority to make it more adaptable for the future.
Senators Voice Concerns and Criticism
Senator Afnanullah Khan strongly opposed allowing any member of the authority to trade in cryptocurrency themselves, citing a clear conflict of interest. He also claimed that Pakistanis have already invested a staggering $21 billion in digital currencies. The session became tense when Senator Afnanullah accused the Law Secretary of stealing his proposed bill. “You should be ashamed of yourself for stealing my bill,” he said angrily. Committee Chairman Senator Saleem Mandviwala supported him, criticizing the government for what he called a habit of ignoring private members’ bills until it becomes convenient for them to claim credit.
Crypto Mining and Chinese Interest
The committee also discussed the growing interest in crypto mining. Senator Mandviwala revealed that several Chinese companies have reached out to Pakistan with offers to establish mining operations by generating their own electricity. However, he noted that the high cost of electricity in Pakistan remains a major obstacle for large-scale mining ventures. “Crypto mining depends on the business model. If the model is right, investors will come,” he remarked.
Formation of a Subcommittee
To further evaluate the Virtual Asset Bill, the Senate Standing Committee has formed a subcommittee tasked with reviewing the draft in detail and recommending necessary revisions.
