Pakistan to launch digital currency pilot with Japan’s Soramitsu in 2025

ISLAMABAD: The State Bank of Pakistan (SBP) will launch a central bank digital currency (CBDC) pilot with Japanese blockchain technology company Soramitsu by the end of 2025, marking a major step towards the country’s digital financial transformation.

The initiative follows the federal government’s approval of the Virtual Assets Act 2025 last month.

According to Japanese news outlet Nikkei Asia, the project is backed by Japan’s Ministry of Economy, Trade, and Industry under the Global South Future-Oriented Co-Creation Project, aiming to tackle challenges in Pakistan’s largely cash-dependent economy.

Pakistan’s digital currency effort gets support from Japan https://t.co/fXwVhsUzCI

— Nikkei Asia (@NikkeiAsia) August 11, 2025

The CBDC is expected to reduce the high costs of cash circulation and promote financial inclusion. Soramitsu is also developing an offline transaction feature, allowing digital currency payments via smartphones without continuous internet connectivity — a potential game-changer for regions with poor network coverage.

Soramitsu will deploy its Hyperledger Iroha platform to ensure secure and transparent transactions during the pilot phase.

The company previously co-developed Bakong, Cambodia’s first CBDC, and now embarks on its largest project yet, targeting Pakistan’s 250 million population and a $400 billion economy.

Earlier, government formally approved the “Virtual Assets Act, 2025,” following endorsements from the Federal Cabinet, Prime Minister Shehbaz Sharif, and President Asif Ali Zardari to establish a regulatory authority that will ensure Shariah compliance of virtual assets.

The law establishes the Pakistan Virtual Asset Regulatory Authority (PVARA), an autonomous federal body empowered to license, regulate, and supervise entities dealing in virtual assets, according to press release issued by Office of the Special Assistant to PM/Minister of State on Blockchain and Crypto.

The Authority has been granted comprehensive powers to ensure transparency, compliance, financial integrity, and the prevention of illicit activities, in alignment with international standards including those of the Financial Action Task Force (FATF).