Pakistan Considers Stablecoin, Risks $25 Billion Opportunity

Key Takeaways

• Pakistan is reportedly considering the launch of a stablecoin backed by the national rupee.
• Experts caution that delaying digital asset regulation could cost Pakistan an estimated $25 billion in economic opportunities.
• The Pakistan Banks Association (PBA) sees significant potential in blockchain, estimating a $20-$25 billion growth sector related to cryptocurrency.
• Regulatory bodies, including the State Bank of Pakistan and the Pakistan Virtual Asset Regulatory Authority (PVARA), are actively working on frameworks for digital assets.
• Pakistan is aiming to solidify its position as a key player in the expanding global crypto ecosystem.

Pakistan Explores Rupee-Backed Stablecoin Amidst Economic Opportunity Warnings

Pakistan is currently evaluating the potential launch of a stablecoin backed by its national currency, the rupee. This initiative gains prominence as experts warn that the country risks missing out on substantial economic opportunities, estimated to be as high as $25 billion, if it delays the much-needed regulation of digital assets.

Zafar Masud, President of the Pakistan Banks Association (PBA), highlighted this potential in a report by Daily Times, suggesting that Pakistan could tap into a growth of approximately $20 to $25 billion from the cryptocurrency sector. Speaking at a Sustainable Development Policy Institute (SDPI) conference, Masud emphasized the urgency, stating, If we delay regulation, we risk losing billions in potential investment and innovation. He further noted that Pakistan’s youth demographic and its burgeoning digital economy present a massive opportunity for advancements in blockchain technology.

A successful implementation of such a strategy could position Pakistan as a leading force in fintech and digital payment solutions within the region.

Masud Highlights Global Stablecoin Market Growth

When queried by reporters regarding the shift in focus towards the stablecoin market, Masud acknowledged its rapid global expansion. He confirmed that Pakistan is indeed carefully assessing the feasibility of creating a rupee-backed stablecoin.

💡 Masud also pointed out the significance of a Central Bank Digital Currency (CBDC), suggesting it could improve access to financial services and reduce the costs associated with remittances.

Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan, shared insights into the nation’s progress. Mazhar revealed that the development of a CBDC prototype is already underway, with support from the International Monetary Fund (IMF) and the World Bank. He indicated plans for a pilot phase before the full rollout of the prototype.

Additionally, Pakistan’s stablecoin exploration follows closely on the heels of a fintech startup, ZAR, announcing its intention to offer dollar-backed stablecoins to everyday users in the country. Concurrently, other emerging market initiatives have secured significant funding rounds, signaling broader investor confidence in the digital asset space.

Pakistan Aims to Strengthen its Role in the Crypto Ecosystem

Recent reports indicate that Pakistan has made significant strides in crypto adoption, climbing six positions to secure the third spot in Chainalysis’ Global Crypto Adoption Index for 2025. This ranking underscores the country’s emergence as a rapidly growing market for digital assets globally. Local estimates suggest that Pakistani citizens hold between $20 billion and $30 billion in digital assets, often transacted through peer-to-peer networks and informal channels.

In a move to bolster its presence in the crypto market, Pakistan officially welcomed Virtual Asset Service Providers (VASPs) and international crypto exchanges in September. The country has invited these entities to apply for licenses under a newly established federal regulatory framework.

📍 The Pakistan Virtual Asset Regulatory Authority (PVARA) has encouraged leading firms to submit Expressions of Interest (EoIs) to contribute to the nation’s expanding digital asset industry.

Established under the Virtual Assets Ordinance 2025, PVARA is tasked with regulating, licensing, and overseeing VASPs, operating as an independent regulatory body according to a report from local news source Dawn. A key responsibility of PVARA is to ensure that VASPs adhere to international standards and comply with the stringent guidelines set forth by the Financial Action Task Force (FATF).