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Pakistan is actively considering the launch of a stablecoin pegged to its national currency, the rupee. This strategic move comes as the country recognizes a significant economic opportunity within the burgeoning cryptocurrency sector, estimated to be worth between $20 and $25 billion. The government aims to leverage this potential while addressing financial inclusion and remittance costs.
Key Takeaways
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Pakistan is contemplating a rupee-backed stablecoin.
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The nation could miss out on $25 billion in crypto-related economic growth if regulations are delayed.
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A Central Bank Digital Currency (CBDC) prototype is under development.
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Pakistan ranks third globally in crypto adoption.
Tapping into a $25 Billion Crypto Market
Experts in Pakistan have highlighted that the country stands to gain between $20 to $25 billion in economic opportunities by embracing digital assets. Zafar Masud, President of the Pakistan Banks Association (PBA), emphasized that delays in regulating the crypto space could lead to substantial losses. He pointed to the rapidly expanding global stablecoin market as a key area for Pakistan to explore, suggesting that a rupee-backed stablecoin could significantly boost the economy.
CBDC Development and Financial Inclusion
The State Bank of Pakistan is already working on a Central Bank Digital Currency (CBDC) prototype, with support from the World Bank and the International Monetary Fund (IMF). Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan, confirmed that a pilot phase is planned before a full rollout. The introduction of a CBDC is expected to enhance financial access for the unbanked population and reduce the costs associated with remittances.
Growing Crypto Adoption and Regulatory Framework
Pakistan has seen a remarkable surge in cryptocurrency adoption, securing the third position in Chainalysis' 2025 Global Crypto Adoption Index. This growing interest is further evidenced by the success of startups like ZAR, which aims to provide dollar-backed stablecoins to Pakistani users and recently raised $12.9 million in funding. To support this growth, Pakistan has also opened its doors to international crypto exchanges and virtual asset service providers (VASPs), inviting them to apply for licenses under a new regulatory framework established by the Pakistan Virtual Asset Regulatory Authority (PVARA). PVARA is tasked with licensing, regulating, and supervising VASPs, ensuring they adhere to international standards and FATF guidelines.
Sources
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Pakistan mulls rupee-backed stablecoin as country sees $25B crypto opportunity, TradingView.
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Pakistan mulls rupee stablecoin to tap $25B crypto surge, Cryptopolitan.
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