Pakistan Weighs Rupee-Backed Stablecoin to Capture $25B Crypto Growth Opportunity
Pakistan is ramping up efforts to enter the world of stablecoins and blockchain technology, considering the launch of a rupee-backed stablecoin and a central bank digital currency (CBDC) to boost financial inclusion and tap into a $25 billion crypto-driven growth opportunity. Banking leaders and regulators are pushing for swift adoption and regulation, aiming to ensure Pakistan becomes a key player in the rapidly expanding digital asset space, a topic now trending in crypto news and captivating the crypto pur community.
Race Against Time: Regulation and Opportunity
At the Sustainable Development Policy Institute (SDPI) Conference, Zafar Masud, President of the Pakistan Banks Association, warned that Pakistan risks missing out on $20 to $25 billion in new economic growth if delayed regulation allows digital asset innovation to pass the country by. Masud cited the booming global stablecoin market and stated that Pakistan is “seriously considering” a rupee-backed stablecoin as a way to modernize the nation’s financial infrastructure, attract investment, and reduce costly remittance fees for millions of overseas workers.
CBDC Prototype and Blockchain Adoption
Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan, confirmed the development of a CBDC prototype with assistance from the World Bank and IMF. The pilot phase is expected to go live soon, with a broader rollout designed to reach both urban and rural areas, especially targeting Pakistan’s over 100 million unbanked adults. The digital rupee will integrate with popular mobile wallets and is expected to offer zero-fee transfers, even supporting offline functionality for underconnected regions.
CBDC advocates believe that blockchain technology can help reduce corruption, lessen tax evasion, and significantly boost the country’s financial transparency, reflecting how crypto news and innovation are now tied to national economic policy.
Stablecoins and Global Partnerships
The spotlight on stablecoins comes just weeks after fintech startup ZAR, backed by global investors such as Andreessen Horowitz and Coinbase Ventures, raised $12.9 million to make dollar-backed stablecoins accessible to everyday Pakistanis. ZAR’s mission is to bring digital payment solutions to the unbanked, and their efforts highlight both the need for regulation and the market’s potential.
The push for stablecoins is seen as a direct response to the volatility of Pakistan’s national currency, which has seen steep declines over the past year. Stablecoins pegged to the rupee could offer a way for citizens to avoid currency devaluation and transfer funds at a fraction of current remittance costs.
New Regulatory Authority and Licenses
September marked another crucial milestone for Pakistan’s crypto roadmap with the opening of the Pakistan Virtual Asset Regulatory Authority (PVARA), established under the Virtual Assets Ordinance 2025. This new regulator has begun inviting global crypto exchanges and virtual asset service providers to apply for licenses, aiming to shape a transparent, secure, and competitive digital asset marketplace.
PVARA’s structure seeks to attract international blockchain technology partners, ensure consumer protections, and strengthen the crackdown on illicit finance, ensuring crypto pur values are built into the country’s regulatory framework.
Pakistan Rising in Crypto Adoption
Pakistan’s rapid crypto growth has earned it the #3 spot in the 2025 Chainalysis Global Crypto Adoption Index, reflecting surging mobile and blockchain adoption rates across the country.
Industry observers highlight that swift stablecoin and CBDC adoption could further solidify Pakistan’s role as a digital finance leader in South Asia.
Conclusion
Pakistan’s exploration of a rupee-backed stablecoin and digital rupee CBDC highlights how blockchain technology, regulatory innovation, and the drive for financial inclusion are converging in one of the world’s fastest-growing crypto markets. With billions in economic opportunity at stake, the next steps taken by policymakers and the private sector will shape the nation’s place in the crypto pur future, a trend that continues to dominate both domestic and global crypto news.