Problems, pressure points and possibilities in Pakistan’s adoption of a central bank digital currency
DOI:
https://doi.org/10.13133/2037-3643/18805Keywords:
central bank digital currency, money, Pakistan, central bankingAbstract
We argue that Pakistan is unlikely to develop sophisticated and well-reasoned plans for the adoption of a central bank digital currency (CBDC) soon. While there is interest in financial inclusion and the digitization of finance, a CBDC will not change economic fundamentals, will not receive an enthusiastic response domestically and will not aid significantly in improving financial inclusion as trust in the sovereign remains low and instability continues. There may, however, be some international pressures which may take Pakistan towards CBDC adoption. The Pakistani case will likely vindicate CBDC pessimists and proponents of the view that social problems rarely have technological solutions.
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