Key Highlights
- Experts estimate $20–30 billion in local crypto investments, with total trading volumes nearing $300 billion, close to the country’s GDP.
- The absence of a clear crypto framework could cost Pakistan up to $25 billion in missed opportunities, experts warned.
- Banking leaders support a gradual legalization approach, prioritizing consumer protection and cybersecurity.
Pakistan is considering the development of both a rupee-backed stablecoin and a central bank digital currency (CBDC), as crypto activity quietly grows in the country. Experts and regulators believe digital finance could modernize the nation’s financial system and unlock billions in economic opportunities, provided clear rules are established soon.
According to local reports, Pakistanis have invested $20-30 billion in crypto assets, with total trading volumes possibly reaching $300 billion—nearing the country’s $400 billion GDP. Experts at a recent conference on these figures, organized by the Sustainable Development Policy Institute (SDPI), warned that the lack of a legal framework could cost Pakistan as much as $25 billion.
They advocated a gradual path toward legalization, starting with strict standards for consumer protection and cybersecurity, among others. They also suggested a CBDC should be released before wider crypto adoption to help bring down the cost of remittances and shore up oversight.
“We have the potential to generate $20–25 billion if we move decisively,” Zafar Masud, President of the Pakistan Banks Association (PBA), said at the conference. He added that the government is “seriously considering a rupee-backed stablecoin” as part of a broader digital finance plan.
Masud said a digital rupee could improve financial inclusion but cautioned that either poor regulation or weak cybersecurity may undermine progress.
Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan, confirmed that a CBDC prototype is already being developed with support from the World Bank and IMF. A pilot project will be launched before the digital currency is made available nationwide.
Private sector momentum
The discussion coincides with growing private-sector interest. Local fintech startup ZAR recently raised $12.9 million in a round led by Andreessen Horowitz (a16z), Dragonfly Capital, and Coinbase Ventures. The company aims to expand stablecoin access to Pakistan’s large unbanked population; more than 100 million adults currently lack formal bank accounts.
Meanwhile, Pakistan’s newly formed Virtual Asset Regulatory Authority (PVARA) has introduced a federal licensing framework for international cryptocurrency firms. It has invited exchanges and virtual asset service providers to apply for licenses under the Virtual Assets Ordinance 2025.
Where does India stand?
While Pakistan pushes forward its plans for a digital rupee and clearer crypto rules, its neighbor India is also reconsidering its stance.
India’s stance on stablecoins is an evolving one, from hesitation to cautious acceptance. In the past few months, regulators, banking officials, and policymakers seem to be grudgingly acknowledging their growing use in remittances and cross-border payments.
More Indians working abroad now use USDT (Tether) to send money home, drawn by faster and cheaper transfers than traditional banking.
As remittances, fintech activity, and use of digital assets keep growing, India is apparently moving towards a clearer direction on stablecoins and digital currencies. Both India and Pakistan are making cautious yet significant steps toward creating safer, more inclusive digital finance systems.
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