FM urges SBP to consider cryptocurrency with ‘open mind’

February 24, 2025 (MLN): Authorities, including the State Bank of Pakistan (SBP), have been urged to approach the potential introduction of cryptocurrency with an “open mind” amid significant developments in digital banking in Pakistan, stated Finance Minister Muhammad Aurangzeb.

"The reality is that crypto is already in vogue in the informal market, and the numbers are what they are”, said Muhammad Aurangzeb, a former senior banker, said at the ‘Pakistan Banking Summit 2025’ in Karachi on Monday.

“Even if they are one-fourth of what is being moved around, we need to think ahead of the cycle in terms of the regulatory regime”, he added.

“We must also consider how to move forward with AI and digital assets in Pakistan”, he further noted.

Referring to discussions at the AlUla Conference held recently in Saudi Arabia, the minister highlighted that most of the emerging markets are on their transformation journey, according to the press release issued.

Most of them are now talking “about AI and digital assets” to advance financial inclusions and digital banking in their respective countries.

“I know we have our views at this point in time regulatory regime (on the crypto) remains the subject of the central bank (SBP),” he said.

Further elaborating his thoughts on cryptocurrency, the minister while responding to a media query emphasized, “I have talked in the context of emerging markets where people are looking at AI and digital assets more broadly and how we are looking at it here”.

“From my perspective, we have to approach it (cryptocurrency) with an open mind”, he said.

Pakistan has come a long way in digital banking and financial inclusions, the minister remarked.

“From my perspective, digital is not the end, but a means to the end. It is better, cheaper and faster,” he maintained.

Aurangzeb highlighted that banks are engaged in broader discussions on the “war on cash” and emphasized that Pakistan is committed to advancing toward a cashless society.

“This will be achieved by furthering the country’s digital banking journey and ensuring the widespread deployment of point-of-sale (POS) machines and QR codes”, he added.

In his policy statement, the Finance Minister said that the government remains committed to deregulation and privatization of assets.

He said banks have to play a role in mobilizing investment through local investors into the domestic economy.

“This is a must to attract foreign direct investment (FDI) into different sectors of the economy,” he said.

While responding to another query at the media talk, the finance minister said Pakistan will not step back from the ongoing structural reforms in the economy to end the “boom and bust cycle” and move forward to attain sustainable growth.

“The structural reforms are primarily being done in Federal Board of Revenue (FBR) and energy and taxation measures in the agriculture sector,” he said.

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