Pakistan partners with Japan’s Soramitsu to launch CBDC pilot, aiming to modernize finance under the new Virtual Assets Act 2025.
The State Bank of Pakistan (SBP) is taking a major step toward modernising its financial system. It has partnered with Japanese blockchain company Soramitsu to begin testing a central bank digital currency (CBDC). This is in line with the recent adoption of the Virtual Assets Act 2025, which legally establishes the use of digital assets in the country.
Nikkei Asia reported that Soramitsu will collaborate with SBP to develop and implement a CBDC pilot programme. The idea is to discuss how blockchain technology can enhance Pakistan in the field of financial services and present a digital version of the Pakistani rupee.
This pilot is in Pakistan, which is a wider plan to control and incorporate digital assets in its economy. Pakistan had enacted the Virtual Assets Act earlier in July 2025 establishing the Pakistan Virtual Asset Regulatory Authority (PVARA). This new federal entity will have the mandate of monitoring the virtual asset activity and granting licenses to digital asset service providers.
The law also requires all companies dealing with digital assets to be registered in the law with serious requirements. These are observing reporting guidelines, having appropriate incorporation and adherence to financial guidelines. Notably, there is also the regulatory sandbox that is in the law. This enables testing of new technology to be carried out safely prior to the final approval. Moreover, it will have the help of a shariah advisory committee to oversee the process so that it is in line with principles of Islamic finance. Any legal challenge to the decisions of PVARA will be dealt with by an appellate tribunal.
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Besides the CBDC pilot, some evidence has been given that Pakistan is considering developing a state-backed Bitcoin reserve. This would position the country among an increasing number of countries experimenting with the use of cryptocurrencies in the public finance.
Pakistan’s interest in digital currency is not new. In fact, in 2021, the SBP placed CBDCs in its roadmap in digital banking. But the past few months have seen a rise in momentum. An important meeting in Islamabad gathered bankers, forex traders, and technology specialists to debate about the future of virtual currencies in the country.
At the meeting, the participants became aware of increasing government attention towards blockchain and digital assets. Others interpret this as a strong indication that Pakistan is interested in joining the international trend that is embracing digital finance. Nonetheless, not all people are in agreement. There is still a debate as to whether digital currencies can scale up, especially at a time when most central banks across the globe are still skeptical.
This action of Pakistan resembles the initiatives in China, India, Nigeria, and the Gulf nations. These countries are also experimenting with or issuing digital currencies in the form of pilot programs. They aim at enhancing payment mechanisms and decreasing the use of money.
To sum up, the partnership between SBP and Soramitsu and the enactment of the Virtual Assets Act lead to a new era in the financial future of Pakistan. If the CBDC trial succeeds, it could lead to safer, more efficient, and transparent financial services. It could also help Pakistan join the global trend of digital currencies using blockchain technology.
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