Blockchain development company Soramitsu, headquartered in Tokyo, is leading the digital currency promotion in Pakistan and is conducting a central bank digital currency (CBDC) pilot in collaboration with the State Bank of Pakistan (SBP) before the end of 2025.
Leveraging its proven track record in Asia, including the development of Cambodia's Bakong digital currency, Soramitsu's involvement highlights the increasing importance of digital assets in modernizing financial systems in emerging markets.
Soramitsu Leads CBDC Adoption in Asia
Soramitsu, Japan's leading blockchain technology company, has begun a digital Pakistani Rupee pilot program in cooperation with the State Bank of Pakistan. Funded by the Japanese Ministry of Economy, Trade and Industry's Global South Future-Oriented Co-Creation Project, this initiative primarily aims to address urgent financial issues in Pakistan's cash-dependent economy, as reported by Nikkei.
Masato Toriya, a Pakistan expert and associate professor at Tokyo University of Foreign Studies, stated, "In rural areas, many transactions are made in cash, and the percentage of people with bank accounts remains low." By introducing CBDC, the project seeks to reduce significant costs associated with cash circulation and expand financial inclusion.
Soramitsu has pioneering experience with CBDC technology in Asia. The company co-developed Bakong, Cambodia's first central bank digital currency, and now embarks on its largest project targeting Pakistan, with a population of 250 million and an economy of approximately $400 billion.
The Tokyo-based company is also innovating offline CBDC functionality, enabling users to conduct digital currency transactions via smartphone without continuous internet access. This feature could be transformative in developing countries with uneven connectivity, potentially positioning the Pakistan pilot as a global model.
Pakistan's Digital Asset Strategy
SBP Governor Jamil Ahmad revealed in July that the central bank is finalizing legislation to regulate virtual assets and is preparing to launch a CBDC pilot soon. At the Reuters Next Asia Summit in Singapore, Ahmad emphasized that Pakistan is "committed to strengthening SBP digital currency capabilities and establishing a regulatory framework for virtual asset licensing".
Simultaneously, Pakistan has intensified efforts to integrate cryptocurrencies into its financial ecosystem. The government-supported Pakistan Crypto Council, established in March, is promoting virtual asset adoption and exploring initiatives like Bitcoin mining using surplus energy. The council is also collaborating with international crypto companies, including Binance and US-based firms, reflecting a strategic approach to digital asset development.
While virtual assets remain unlicensed, the SBP clearly stated in May that they are not illegal and urged financial institutions to await an official regulatory framework regarding such assets.
