Pakistan is considering launching a rupee-backed stablecoin, as experts warn that delays in regulating digital assets could cost the country up to $25 billion in lost economic opportunities.
Speaking at the Sustainable Development Policy Institute (SDPI) Conference on Friday, Pakistan Banks Association (PBA) President Zafar Masud said the nation could unlock $20–$25 billion in crypto-related growth, according to a report by local news outlet Daily Times.
Masud pointed out the booming global stablecoin market, adding that Pakistan is “seriously considering a rupee-backed stablecoin” and that a Central Bank Digital Currency (CBDC) could improve financial access while reducing remittance costs.
Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan, revealed that a CBDC prototype is already being developed with assistance from the World Bank and International Monetary Fund (IMF), with a pilot phase planned before full rollout.
Related: Demographics will ‘leapfrog’ Bitcoin adoption in Pakistan — Bilal Bin Saqib
ZAR aims to bring stablecoins to Pakistan’s unbanked
Pakistan’s plan to launch its own stablecoin comes shortly after ZAR, a fintech startup working to make dollar-backed stablecoins accessible to everyday users in Pakistan and other emerging markets, raised $12.9 million in a funding round led by Andreessen Horowitz (a16z).
Other investors included 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.
As Cointelegraph reported, Pakistan jumped six places to secure third position in Chainalysis’ 2025 Global Crypto Adoption Index, cementing its status as one of the fastest-growing cryptocurrency markets worldwide.
Related: Crypto helps emerging economies bypass legacy financial constraints
Pakistan invites global crypto firms to apply for licenses
In September, Pakistan opened its doors to international crypto exchanges and virtual asset service providers (VASPs), inviting them to apply for licenses under a new federal regulatory framework.
The Pakistan Virtual Asset Regulatory Authority (PVARA) urged leading firms to submit Expressions of Interest (EoIs) to help shape the country’s emerging digital asset industry. PVARA, set up under the Virtual Assets Ordinance 2025, is tasked with licensing, regulating and supervising VASPs.
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