【Pakistan Proposes Amendments to SBP Act to Allow Central Bank to Issue CBDC】According to Golden Finance, the Pakistani government has proposed amendments to the SBP Act, which may indicate its attempt to legalize cryptocurrency, marking a shift in the country's financial policy. The amendment will allow the State Bank of Pakistan (SBP) to issue digital currency and manage the country's currency in both physical and digital forms. It also includes granting the SBP the authority to conduct CBDC operations, stating that CBDC can operate as legal tender. Additionally, the SBP plans to establish a subsidiary to develop and operate digital payment systems. The proposed amendment also suggests penalties for unauthorized issuance of digital currency, with fines amounting to twice the value of the illegally issued currency. Although the federal cabinet has not yet announced a specific timeline for approving the amendment, these changes may shift the focus towards regulatory oversight and the integration of digital currency into Pakistan's financial framework. The amendment will also expand the powers of the SBP board, enabling it to approve broader financial reporting and strengthen governance processes. It is understood that the SBP has historically classified cryptocurrencies like Bitcoin as illegal money and has issued warnings regarding the associated risks, specifically highlighting the lack of legal protection against financial losses caused by the high volatility of cryptocurrencies. (The Express Tribune)

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