Introduction of Stablecoin in Pakistan
Pakistan is reportedly contemplating the introduction of a stablecoin anchored to its national currency, the rupee. This initiative emerges amidst growing concerns from experts that lax regulations surrounding digital assets may lead to a significant economic loss for the country, estimated at $25 billion.
Opportunities for Growth
At a conference hosted by the Sustainable Development Policy Institute (SDPI) on Friday, Zafar Masud, the President of the Pakistan Banks Association (PBA), highlighted that the burgeoning global market for stablecoins represents an untapped potential for crypto growth within Pakistan, with projections estimating a $20 to $25 billion boost. He emphasized the opportunity for a Central Bank Digital Currency (CBDC), noting its potential to enhance financial accessibility and lower remittance fees.
Development of CBDC
Furthermore, Faisal Mazhar, who serves as the Deputy Director of Payments at the State Bank of Pakistan, shared that efforts are already underway to develop a prototype for a CBDC, supported by the expertise of international bodies like the World Bank and the International Monetary Fund (IMF). A pilot program is currently being arranged as part of this initiative.
Fintech Innovations
In parallel, the fintech company ZAR has made headlines for its recent fundraising achievements. This startup, which aims to provide dollar-denominated stablecoins to users in Pakistan and other developing regions, successfully secured $12.9 million in funding, with notable contributions from venture capital firms such as Andreessen Horowitz (a16z), Dragonfly Capital, VanEck Ventures, and Coinbase Ventures. ZAR is targeting Pakistan’s sizable population of 240 million, focusing on the financial inclusion of over 100 million adults who currently lack banking access through its stablecoin offerings.
Regulatory Developments
According to Cointelegraph, Pakistan has recently ascended to third place in Chainalysis’ 2025 Global Crypto Adoption Index, affirming its position as one of the world’s fastest-expanding cryptocurrency markets. In September, the country took a significant step by permitting foreign crypto exchanges and virtual asset providers (VASPs) to apply for operating licenses, a move aimed at establishing a robust regulatory framework under the Pakistan Virtual Asset Regulatory Authority (PVARA). This authority, instituted through the Virtual Assets Ordinance 2025, is charged with overseeing, licensing, and regulating the activities of VASPs, and it has encouraged leading companies to express their interest in shaping the nation’s digital assets landscape.
