Digital currency and Pakistan’s economy

Description

This article examines the potential economic implications of introducing a central bank digital currency in Pakistan. It considers how digital currency could expand financial inclusion, formalise economic activity, improve remittance efficiency and reduce tax evasion, while highlighting barriers such as low financial literacy, limited digital access, cybersecurity risks and weak merchant adoption. The article recommends a carefully regulated, inclusive and gradual transition supported by digital infrastructure, public education and continued access to physical currency.