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Monday, June 24, 2024

To stabilize the rupee, the Pakistani government is introducing digital currency.

To save money on printing and transferring actual currency around, the Pakistani government has chosen to establish a digital currency. By simplifying financial transactions, this step is anticipated to increase the Pakistani rupee’s value and strengthen the nation’s economy.

Similar to how one unit of Chinese digital currency equals one Chinese Yuan, this digital currency will have the same value as the standard Pakistani rupee. This initiative is supported by the State Bank of Pakistan (SBP), and just like conventional paper money, the government will guarantee the digital currency. With the assistance of experts, the SBP has already begun constructing the digital money.

The effectiveness of this digital money is being examined by a unique division called the Central Bank Digital money, which is weighing the advantages and disadvantages. With around 80% digital money and 20% paper money still in circulation, the government wants to eventually replace paper money with digital money. This keeps paper money accessible in case it is required.

By switching to digital money, the cost of printing and transporting paper money should be reduced. Additionally, because every digital transaction will be tracked, the government will be better able to regulate the economy.

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