Page 42 - CMA Journal (Jan-Feb 2026)

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D Digital T r a n s f o r m a t i o n
Digital Transformation
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ransformation

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Focus Section
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Not Just Technology
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Almighty has blessed the world with a day of 24 hours, models, etc. Mainly, there
which span was more than enough during the primitive age are four types of Digital
with a simple and crude lifestyle. The inquisitive nature of Assets.
humans, and with the advent of industrialization, he started b) Cryptocurrencies –
experiencing that the available 24 hours were too short to These are digital curren-
fulfill all his ambitions. Especially with no chance of its cies with no physical
extension, his main focus was to produce more and travel existence and are made
fast just to accumulate wealth and gain time. Necessity to work through a
remained the mother of invention. In other words, computer network
technological inventions are just motivated by human without any backing
desires to satisfy needs and unending ambition, by from a central authority
improving productivity, moving fast and producing more at like a government or
affordable prices. This lust kept humans driven from basic central bank. They work
existence to complicated economic and social grandeurs.
under a decentralized
The inspiration to conquer the universe in no time has taken system. Hence, they are
man to the moon, achieved a ground rail speed of 400 km/h, considered intangible Syed Shamim Ahmed, FCMA
and the Apollo 10 capsule could take a person at a speed of trust assets. Courts in
39,900 km/h. The timeline from one innovation to the other India, UK, and some Former General Manager Finance
kept reducing from centuries to decades in view of the other countries recog- Karachi Port Trust (KPT)
accelerating quality of knowledge. Time gaps between the nize such cryptocurren-
Printing Press to Electric Bulb to Automobile were long cies as intangible property capable of being trusted. Using
compared to the internet to 5G to robots to AI to Digital cryptocurrency requires a crypto-wallet like a bank account
Assets, and still counting. for banking transactions. These currencies have no intrinsic
value but are evaluated based on what people are ready to
Any innovation contains inherent negative side effects,
making humans liable to pay its cost. The glaring example is pay at any point in time, and their values are not easy to
Global Warming damaging the environment together with predict as no factors are available as a basis to forecast.
social costs. All this has increased awareness for preferential c) Crypto Wallet – This is a service provided for the
research sectors like renewable energies, advanced public transfer of money, like JazzCash, EasyPaisa, etc. For easier
transit, AI driven diagnostics, personalized medicines, understanding, it is almost similar to bank accounts, with
eco-friendly agriculture, and, above all, a shift of fundings to the difference that bank accounts are maintained by
environmentally friendly projects. The continuous scheduled banks and highly regulated, also provide loans,
innovations with technological advancement have given cards, and can be approached through various bank
rise to the Digital Transformation, with its key components branches, whereas digital wallets hold money digitally only.
like e-governance platforms, digital infrastructure, mobile Money can be sent/received through wallets in different
apps, data management, necessary training for officials, and cryptocurrencies.
citizen involvement.
d) Blockchain – It is a decentralized digital ledger
Till the recent past, people’s money was parked and recording transactions online across a network where data
considered safe in some banks, being used through issuing cannot be altered. Users can view the transactions, and they
cheques. Then came credit and debit cards, which only a few are secured technically. Steps are being taken by the
would carry, and these were safe and rather easy to use for Pakistan Government to transfer all land and property
any type of payments. However, banks are charging their records on blockchain technology to restrict alterations and
relevant fees, including interest when funds are borrowed, any fraudulent transactions and to integrate with NADRA
and they take more time in money transfer. Then came the and FBR. Due to its decentralized digital nature, any change
Digital Economy, where payments are made/received not in one copy does not affect others until the combined
always involving banks but through e-wallets or crypto system makes changes with consent from all.
wallets, taking least time and the lowest cost.
e) Tokenization – These are digital security systems
1) Digital Assets and Cryptocurrencies mainly provided by banks, license holders, and government
institutions for the safety of any item which has ownership
a) Digital Assets – These are nonphysical intangible
assets represented and created through a digital presence rights with a value and legal existence, enabling part
and can be stored and transferred digitally and have usage ownership, security, and trading round the clock once these
rights. These are treated as intangible assets in accounting are digitalized. Token issuers provide a unique number as
presentation. Their value is noted at a point in time and they Token ID. Such documents are not provided physical
are represented either through video, images, audio files, 3D security, for which bank lockers are the right tool.
40 ICMA’s Chartered Management Accountant, Jan-Feb 2026