Pakistan Weighs Rupee-Backed Stablecoin Amid $25B Crypto Opportunity

Islamabad explores a national stablecoin and CBDC prototype as experts warn delays in crypto regulation could cost billions in lost economic potential.

Pakistan Eyes Digital Currency to Boost Financial Inclusion

Pakistan is actively considering the launch of a rupee-backed stablecoin, alongside a central bank digital currency (CBDC), as part of a broader push to modernize its financial system and expand access to digital finance.

Speaking at the Sustainable Development Policy Institute (SDPI) Conference on Friday, Pakistan Banks Association (PBA) President Zafar Masud highlighted that delays in regulating cryptocurrencies could cost the country between $20–$25 billion in untapped growth opportunities, according to the Daily Times.

Masud emphasized that the global stablecoin market boom presents a major opportunity for Pakistan to capture value through innovation, while a CBDC could further reduce remittance costs and improve financial inclusion across the country.

Pakistan Rises in Global Crypto Adoption Rankings

Pakistan’s crypto adoption continues to surge. The country jumped six places to claim third place in the Chainalysis 2025 Global Crypto Adoption Index, cementing its position as one of the world’s fastest-growing digital asset markets.

“Crypto helps emerging economies bypass legacy financial constraints,” noted Bilal Bin Saqib, a blockchain advocate and entrepreneur, highlighting the demographic and economic drivers behind the rise.

CBDC Prototype Underway with World Bank and IMF Support

Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan (SBP), revealed that the CBDC prototype is already under development, supported by the World Bank and International Monetary Fund (IMF).

He added that the pilot phase would begin ahead of a full-scale rollout, marking Pakistan’s first major step toward digitizing its national currency infrastructure.

Private Sector Momentum: ZAR’s Stablecoin Initiative

Pakistan’s exploration of a rupee-backed stablecoin comes on the heels of ZAR, a fintech startup aiming to introduce dollar-backed stablecoins to everyday users in emerging markets.

ZAR recently raised $12.9 million in a funding round led by Andreessen Horowitz (a16z), with participation from Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst.

Targeting Pakistan’s 240 million population, where over 100 million adults remain unbanked, ZAR aims to bridge the financial inclusion gap through stablecoin access and cross-border payments.

Government Opens Doors to Global Crypto Firms

In September 2025, Pakistan’s government officially invited international crypto exchanges and virtual asset service providers (VASPs) to apply for local licenses under its new federal regulatory framework.

The Pakistan Virtual Asset Regulatory Authority (PVARA) — established under the Virtual Assets Ordinance 2025 — is tasked with licensing, regulating, and supervising VASPs to ensure compliance and consumer protection.

With growing global investor interest, strong domestic demand, and new institutional frameworks in motion, Pakistan stands at a pivotal moment in defining its crypto future.

A rupee-backed stablecoin and CBDC initiative could not only unlock billions in economic potential but also reshape Pakistan’s financial landscape, bringing millions into the formal economy through blockchain innovation.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.