Pakistan Weighs Launching Rupee-Backed Stablecoin Amid $25 Billion Economic Opportunity
Pakistan is considering the launch of a stablecoin backed by the rupee as part of its broader efforts to embrace digital assets. Experts warn that delaying regulation in this space could cause the country to miss out on up to $25 billion in economic opportunities.
At a recent Sustainable Development Policy Institute (SDPI) Conference, Pakistan Banks Association (PBA) President Zafar Masud highlighted the urgency of timely regulation. “If we delay regulation, we risk losing billions in potential investment and innovation,” Masud stated. He emphasized that Pakistan’s young population and expanding digital economy create a “massive opportunity” for blockchain-based solutions. Success in this initiative could position Pakistan as a regional leader in fintech and digital payments.
Interest in Stablecoins and CBDCs
When asked about Pakistan’s focus on stablecoins, Masud acknowledged the rapidly expanding global market for these digital assets. He explained that the country is carefully evaluating the creation of a rupee-backed stablecoin to capitalize on this trend.
Masud also stressed the importance of a Central Bank Digital Currency (CBDC), noting its potential to enhance financial inclusion and reduce remittance costs.
Supporting this vision, Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan, shared that the bank has already begun developing a CBDC prototype, with assistance from the International Monetary Fund (IMF) and the World Bank. Mazhar revealed plans to conduct a pilot phase before the full launch of the CBDC.
Fintech Developments and Industry Support
Pakistan’s stablecoin ambitions come shortly after fintech startup ZAR announced plans to offer dollar-backed stablecoins to everyday users within the country. Meanwhile, other emerging markets recently secured $12.9 million in a funding round led by Andreessen Horowitz (a16z) — with participation from VanEck Ventures, Endeavour Catalyst, Coinbase Ventures, and Dragonfly Capital.
ZAR aims to provide access to stablecoins and improve financial inclusion for approximately 240 million people in Pakistan, where over 100 million adults remain unbanked.
Growing Crypto Adoption in Pakistan
A reliable source recently reported that Pakistan climbed six positions to rank third in Chainalysis’ Global Crypto Adoption Index for 2025. This achievement underscores the country’s rapid growth in the crypto market.
Local experts estimate that Pakistani citizens hold between $20 billion and $30 billion in digital assets, often managed through peer-to-peer and informal channels.
To reinforce its presence, Pakistan opened applications to virtual asset service providers (VASPs) and international crypto exchanges in September 2024. These entities are encouraged to apply for licenses under a new federal regulatory framework.
Role of PVARA in Crypto Regulation
The Pakistan Virtual Asset Regulatory Authority (PVARA), established under the Virtual Assets Ordinance 2025, has been designated to regulate, license, and oversee VASPs. Acting as an independent regulator, PVARA ensures that firms comply with international standards and Financial Action Task Force (FATF) guidelines.
Recently, PVARA called for Expressions of Interest (EoIs) from leading firms interested in supporting Pakistan’s growing digital asset industry.
Conclusion
With a proactive regulatory approach and growing fintech initiatives, Pakistan is positioning itself as a leader in the crypto ecosystem. The upcoming launch of a rupee-backed stablecoin, combined with CBDC development and increased market openness, could unlock billions in economic benefits and foster financial inclusion throughout the country.
—
Claim your free seat in an exclusive crypto trading community limited to 1,000 members.
https://bitcoinethereumnews.com/finance/pakistan-is-considering-the-introduction-of-a-stablecoin-backed-by-the-rupee/
