Pakistan is contemplating the launch of a rupee-backed stablecoin alongside a central bank digital currency (CBDC) aimed at improving financial inclusion.
Experts caution that a lack of regulation in the digital asset sector could lead to losses amounting to $25 billion in economic opportunities for the country.
During the Sustainable Development Policy Institute (SDPI) Conference held on Friday, Zafar Masud, the President of the Pakistan Banks Association, highlighted the substantial growth potential in the crypto sector, mentioning that the nation could potentially realize $20–$25 billion in economic benefits from cryptocurrencies, as reported by local media outlet Daily Times.
Masud emphasized the expanding global demand for stablecoins, stating that Pakistan is “seriously considering a rupee-backed stablecoin” and that a CBDC initiative could enhance financial access and lower remittance costs.
Meanwhile, Faisal Mazhar, who serves as the Deputy Director of Payments at the State Bank of Pakistan, disclosed plans for a prototype CBDC currently in development with support from the World Bank and the International Monetary Fund (IMF), which is set to enter a pilot phase before a widespread rollout.
ZAR Initiatives for Pakistani Unbanked Citizens
The move towards a domestic stablecoin aligns with recent developments from ZAR, a fintech startup that aims to provide dollar-backed stablecoins to everyday users in Pakistan and other developing markets. Recently, ZAR raised $12.9 million in a funding round spearheaded by Andreessen Horowitz (a16z). This initiative targets a significant portion of Pakistan’s population, with over 100 million adults lacking formal banking services, aiming to bridge the financial inclusion through accessibility to stablecoins.
As per a report by Cointelegraph, Pakistan has made notable strides in cryptocurrency adoption, ranking third in the 2025 Global Crypto Adoption Index by Chainalysis, affirming its position as one of the fastest-growing markets in the cryptocurrency sector worldwide.
Pakistan ranks third in global crypto adoption. Source: Bilal Bin Saqib
Invitation to Global Crypto Companies
In September, Pakistan has opened its doors to international cryptocurrency exchanges and virtual asset service providers (VASPs), inviting them to apply for licenses under a newly established regulatory framework initiated by the Pakistan Virtual Asset Regulatory Authority (PVARA).
PVARA has requested top industry players to submit Expressions of Interest (EoIs) to contribute to the development of the nation’s emerging digital asset industry. The authority, constituted under the Virtual Assets Ordinance 2025, is responsible for the licensing, regulation, and oversight of VASPs.
