Pakistan stands on the verge of a major financial transformation. With a population of over 240 million, the country is considering launching a stablecoin backed by the Pakistani rupee and a central bank digital currency (CBDC). The goal is to boost financial inclusion, lower remittance costs, and tap into the cryptocurrency market potential that could bring up to 25 billion dollars to the economy.

Digital rupee as a path to inclusion

The plans were announced by Zafar Masud, president of the Pakistan Banks Association, at the Sustainable Development Policy Institute (SDPI) conference. He stated that the country could “unlock” growth worth 20–25 billion dollars through digital assets. According to Masud, Pakistan is “seriously considering a rupee-backed stablecoin,” and the introduction of a CBDC could significantly improve access to financial services.

Stablecoins – cryptocurrencies pegged to real-world currencies – are gaining record popularity worldwide, and Pakistan does not want to be left behind. Faisal Mazhar, deputy director of the State Bank of Pakistan’s payments department, confirmed that a prototype of the digital rupee is already being developed in cooperation with the World Bank and the International Monetary Fund (IMF). A pilot phase will precede the project’s full launch.

Private sector steps in

The government’s ambitions are complemented by private fintech initiatives. The company ZAR, aiming to make dollar-backed stablecoins accessible to users in developing countries, recently raised 12.9 million dollars from investors led by Andreessen Horowitz (a16z). Other backers include Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst.

ZAR is targeting Pakistan, where more than 100 million adults remain unbanked. Stablecoins could thus play a key role in expanding financial access, especially among low-income groups.

Pakistan climbs the crypto map

According to the Chainalysis 2025 Global Crypto Adoption Index, Pakistan climbed six spots this year to third place among countries with the fastest-growing crypto adoption. This confirms the surging interest in digital assets despite ongoing regulatory uncertainty.

The government has responded by establishing the Pakistan Virtual Asset Regulatory Authority (PVARA) in September, tasked with licensing and overseeing virtual asset providers. PVARA has also invited international crypto exchanges to apply for licenses and help shape the new market.

Cryptocurrencies as a driver of recovery

For a country long struggling with economic instability, financial digitalization represents a huge opportunity. If Pakistan succeeds in implementing these initiatives, it could become a regional leader in digital finance and turn its crypto potential into real economic growth.

Sources:

https://dailytimes.com.pk/1397242/pakistan-urged-to-regulate-crypto-explore-digital-rupee/

https://cointelegraph.com/news/a16z-backs-zar-stablecoins-pakistan?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

https://www.chainalysis.com/blog/2025-global-crypto-adoption-index/

https://www.dawn.com/news/1941811/pakistan-seeks-partners-for-digital-future