Soramitsu partners with the Central Bank of Pakistan to launch a digital money pilot in 2025.

[Coin World] The Tokyo-based blockchain developer Soramitsu is leading the charge for Pakistan to enter the digital currency space, collaborating with the State Bank of Pakistan (SBP) to pilot a central bank digital currency (CBDC) by the end of 2025. With its strong track record in Asia, including the development of Cambodia's Bakong digital currency, Soramitsu's involvement highlights the growing emphasis on digital assets to modernize financial systems in emerging markets.

Soramitsu promotes the launch of central bank digital currency in Asian countries.

Japan's leading blockchain technology company Soramitsu has partnered with the State Bank of Pakistan to launch a pilot program for the digital rupee in Pakistan. Reportedly, the program is funded by Japan's Ministry of Economy, Trade and Industry under the Global South Future-Oriented Co-Creation Project, aiming to address urgent financial challenges faced by Pakistan's cash-dependent economy.

Masato Toriya, an associate professor and expert on Pakistan at Tokyo University of Foreign Studies, stated: "Many transactions in rural areas are conducted in cash, even for wage payments, and the proportion of the population with bank accounts remains very low." By introducing CBDC, the project aims to reduce the enormous costs associated with cash circulation and expand financial inclusion.

Soramitsu is no stranger to being the first to launch CBDC technology in Asia. The company collaborated with others to develop Bakong in Cambodia, which is the region's first central bank digital currency, and now it has begun the largest project to date, targeting Pakistan's population of 250 million and an economy valued at approximately 400 billion dollars.

This Tokyo-based company is also innovating offline central bank digital currency (CBDC) features, allowing users to conduct digital money transactions via smartphones without the need for continuous internet access. This feature could be transformative for developing economies where connectivity remains uneven, potentially making Pakistan's pilot a global model.

Pakistan's broader digital asset strategy

The Governor of the State Bank of Pakistan, Jameel Ahmad, revealed in July that the central bank is finalizing legislation to regulate virtual assets and is preparing to launch a CBDC pilot soon. Ahmad emphasized Pakistan's commitment to "building our capabilities in SBP digital currency" and laying the regulatory foundation for virtual asset licensing during his speech at the Reuters NEXT Asia Summit held in Singapore.

At the same time, Pakistan is intensifying efforts to integrate cryptocurrency into its financial ecosystem. The government-supported Pakistan Crypto Committee was established in March to promote the adoption of virtual assets and explore initiatives such as Bitcoin mining using surplus energy. The committee has also engaged with international crypto companies, including certain trading platforms and U.S. entities, reflecting a strategic approach to digital asset development.

Although virtual assets have not yet been licensed, the SBP clarified in May that they are not illegal and urged financial institutions to wait for a formal regulatory framework before dealing with such assets.