Pakistan Plans to Launch Digital Currency to Stabilize Rupee
According to reports, the Pakistani government plans to launch a digital currency to stabilize the rupee and reduce currency printing costs. This plan will help stabilize the economy and facilitate financial transactions by increasing the value of the rupee. The digital currency will have the same value as the Pakistani rupee; for example, the Chinese digital currency unit is equal to 1 Chinese yuan. The State Bank of Pakistan (SBP) has already started work on developing a digital currency with the help of experts.
As per the reports, a special unit known as Central Bank Digital Currency is looking into the costs and benefits of this plan and ensuring that this digital currency works properly. Additionally, digital currency is issued on the same basis as currency. The project is expected to address the country’s dire economic situation by improving the rupee.
The government plans to replace banknotes with digital currency but plans to maintain a 20:80 ratio with 20% paper notes and 80% digital currency. These steps will help you if an adverse situation arises.
Launching a digital currency will help minimize the cost of printing banknotes, transporting them, and disposing of old banknotes. All transactions through digital currencies are documented, supporting strong financial policies.
Digital currencies will help facilitate cross-border trade and investment and provide financial services to the unbanked. As per the World Bank, it will increase the efficiency of the financial industry. This step will create a better economic situation for Pakistan.
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