Pakistan to Retract Crypto Trading Warning and Launch CBDC
Pakistan’s finance ministry announced on September 3 that the State Bank will withdraw its previous warning against crypto trading and is actively developing a central bank digital currency (CBDC). The move signals a shift in Pakistan’s crypto regulation, potentially easing local trading conditions and boosting market confidence. While details on the CBDC’s launch timeline remain scarce, Pakistan aims to modernize its financial system and improve payment efficiency. Traders should watch for policy updates and technical frameworks that could influence trading volumes and market sentiment in the region.
Bullish
Withdrawing a warning on crypto trading removes a major regulatory barrier in Pakistan, improving market confidence and liquidity. Coupled with the development of a CBDC, this signals official acceptance of digital assets. Historically, clear regulatory shifts—such as Nigeria’s eNaira announcement—initially spur bullish sentiment in local crypto markets. In the short term, traders may see increased volumes as exchanges resume marketing activities. Over the long term, a Pakistani CBDC could lay infrastructure that supports broader adoption and integration, further reinforcing positive momentum.