Pakistan is positioning itself to enter the global digital finance revolution with a bold move — the creation of a rupee-backed stablecoin and a central bank digital currency (CBDC). Experts believe this step could unlock between $20 billion and $25 billion in economic potential, bringing the country into the forefront of the global crypto economy.
The announcement came during the Sustainable Development Policy Institute (SDPI) Conference, where Pakistan Banks Association (PBA) President Zafar Masud highlighted how the absence of a clear regulatory framework is costing Pakistan billions in missed opportunities.
He stressed that the government must move quickly to regulate digital assets, adding that “Pakistan can no longer afford to sit on the sidelines while the world transitions toward digital finance.”
Rupee Stablecoin and CBDC Development Underway
Masud kept on revealing that the State Bank of Pakistan (SBP) is actively working on the idea of a rupee-backed stablecoin — a digital token pegged to the Pakistani rupee — alongside the ongoing development of the Central Bank Digital Currency (CBDC). Both projects are intended to
- Enhance financial inclusion
- Reduce remittance costs
- Simplify cross-border payments
Faisal Mazhar, Deputy Director of Payments at the SBP, confirmed that the CBDC prototype is currently being developed in collaboration with the World Bank and the International Monetary Fund (IMF). He said that a pilot phase will be launched before the public rollout to test efficiency, security, and usability.
Read more: Pakistan unveils National Bitcoin Reserve and allocates 2,000 MW to Crypto Mining, AI data Centers
The idea of a digital rupee could be a game-changer for Pakistan’s large unbanked population — estimated at over 100 million adults — who remain excluded from the formal financial system.
Private Sector Momentum: ZAR and Global Investment
The renewed push for crypto integration coincides with ZAR, a fintech startup that recently raised $12.9 million in a funding round led by Andreessen Horowitz. The company aims to introduce dollar-backed stablecoins in Pakistan and other emerging markets to make global transactions faster and more affordable.
Major venture capital players like Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst also participated in the funding, signaling growing international confidence in Pakistan’s digital finance potential.
Pakistan Rising in Global Crypto Adoption
As per Chainalysis’ 2025 Global Crypto Adoption Index, Pakistan has climbed six spots to rank third worldwide, making it one of the fastest-growing crypto markets on the planet. This surge comes despite the absence of comprehensive crypto regulation.
To address this, the government established the Pakistan Virtual Asset Regulatory Authority (PVARA) under the Virtual Assets Ordinance 2025, which oversees licensing and regulation of crypto exchanges and Virtual Asset Service Providers (VASPs). Global exchanges have been invited to submit Expressions of Interest, paving the way for Pakistan’s participation in the regulated digital asset ecosystem.
Read more: Binance Academy launches education program with Pakistan’s Ministry of IT
The Road Ahead: Regulate or Miss Out
With the global stablecoin market expanding rapidly, Pakistan’s financial leaders believe swift policy action is essential to capture the benefits of digital assets. Failure to act could mean losing a potential $25 billion opportunity to neighboring markets that are already embracing digital currencies.
As Pakistan is moving closer to introducing a rupee-backed stablecoin and CBDC, the initiative is expected to redefine how millions of citizens save, send, and spend money — potentially ushering in a new era of financial innovation and inclusion for the country.