The federal government of Pakistan has decided to establish Electonic Money Institutes (EMIs) in order to regulate digital currencies.
These institutes will be established from Monday (2nd April) to aid combat money laundering and terrorism as a part of the Financial Action Task Force (FATF).
According to Dawn, the State Bank of Pakistan is to issue digital currency by 2025.
Federal Minister for Finance Asad Umar has asked the central bank to ensure top-class cybersecurity in the banking system with the help of the Federal Investigation Agency (FIA) to extend benefits towards the people.
AS WE MOVE TOWARDS A DIGITAL ECONOMY, IT IS ABSOLUTELY IMPORTANT TO ENSURE CYBERSECURITY,– SAID THE FINANCE MINISTER
In order to officially introduce the system, an opening ceremony was held today at the Islamabad office of the State Bank of Pakistan. Asad Umar was the chief guest along with SBP governor Tariq Bajwa, finance secretary Yonus Dhaga and other officials.
During the ceremony, a senior State Bank official explained that EMIs were non-bank entities to be licensed by the central bank to issue e-money for the purpose of digital payments.
SBP’s Deputy Governor Jameel Ahmad also shared his two cents. He said that the central bank is working on the concept of digital currency and wishes to introduce it and implement it by 2025. This will help in promoting financial inclusion and reduce inefficiency and corruption.
Moreover, Asad Umar has stressed over technological advancement and flawless cybersecurity in his past speeches. He further shared that Pakistan is a good 30-40 years behind other countries when it comes to digital technology and that the digital cash transfer system is a fantastic development in the country.
He also added that Pakistan needs technology available to leapfrog ahead as to where the other countries stand.
Pakistan is now implementing these recommendations and introducing the Electronic Money Regulations based on which EMIs will be issued licenses by the government.
As per Express Tribune, the government will also be authorized to suspend or cancel licenses of EMIs deviating from the set rules and regulations.
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