Synopsis: Pakistan is exploring a rupee-backed stablecoin and CBDC to tap a $25 billion crypto opportunity, with experts urging swift regulation to drive inclusion, remittances, and digital economic growth.
Pakistan is weighing the introduction of a rupee-backed stablecoin and a central bank digital currency (CBDC) as it sees a $25 billion crypto opportunity ahead. Policymakers warn that regulatory delays may cost the nation billions in growth. At the Sustainable Development Policy Institute (SDPI) Conference, experts and regulators stressed the need for urgent action to reshape Pakistan’s financial landscape through digital currencies.
Experts Urge Timely Regulation
Zafar Masud, President of the Pakistan Banks Association, told attendees that Pakistan could unlock $20 to $25 billion in crypto-linked growth if it acts fast. He believes that failure to regulate digital assets will lead to the loss of major investment and innovation opportunities. Masud cited Pakistan’s young population and fast-growing digital economy as advantages in capturing this potential.
Pakistan’s global crypto ranking jumped six spots, placing it third in Chainalysis’ 2025 Global Crypto Adoption Index. A remarkable surge is underway, driven by millions of mobile users and substantial remittances flowing into the country. Personal observation: Pakistan’s digital ascent is impressive, and the pace shows the untapped demand for financial technology, especially among younger users.
Rupee-Backed Stablecoin: Why Now?
Pakistan’s rupee-backed stablecoin would be a digital token pegged to the Pakistani rupee. It aims to help users avoid currency swings and high fees. With the rupee down about ten percent this year, stablecoins could offer a safer way for locals to hold and send money. Remittance fees, which often run five to seven percent using traditional methods, could drop to under one percent with stablecoins. That could mean an extra $1.5–$2 billion for households.
Fintech startup ZAR recently secured $12.9 million to make stablecoins accessible to everyday Pakistanis. Impressively, over 100 million adults in the country lack bank accounts. ZAR seeks to bridge this gap by using simple digital tools that make money transfers easier and cheaper. This could lift millions out of the informal economy. In my view, the focus on simple, secure solutions might change lives for ordinary families.
CBDC Development Accelerates
The State Bank of Pakistan is also moving ahead with its CBDC, dubbed the “Digital Rupee.” Faisal Mazhar, Deputy Director of Payments, shared that the prototype is under development with help from the World Bank and IMF. Officials plan a full pilot before widespread rollout. The central bank aims to reach unbanked adults and slash cash dependency, bringing more consumers into the formal economy.
CBDC features will include zero-fee transfers and simple integration with popular mobile wallets. Further, offline options will help rural users where internet coverage remains spotty. Early results could help reduce corruption and tax evasion by encouraging traceable digital transactions. From a personal viewpoint, the move towards digital money is a bold and forward-thinking step for Pakistan’s long-term financial health.
Regulatory Changes
Pakistan’s new regulatory authority, PVARA, now invites leading crypto and blockchain firms to submit proposals. Under the Virtual Assets Ordinance 2025, PVARA will oversee licensing and regulation to ensure safer and more transparent crypto activity. The setup intends to keep consumer protections strong and financial crimes in check.
Globally, Pakistan’s plan follows trends in emerging economies. Nigeria saw banking inclusion jump after launching its own CBDC. India targets similar gains. However, Pakistan’s surge in crypto adoption gives it a unique edge and a chance to set standards for others. Early chatter on social media calls this a “step forward” for innovators and ordinary users alike.
Written By Fazal Ul Vahab C H