Pakistan eyes rupee-backed stablecoin amid $25B crypto opportunity

Pakistan is weighing the launch of a rupee-backed stablecoin and a central bank digital currency (CBDC) as part of its push to boost financial inclusion and tap into a growing digital economy.

At the Sustainable Development Policy Institute (SDPI) Conference on Friday, Pakistan Banks Association (PBA) President Zafar Masud said that the country could unlock $20–25 billion in crypto-related growth if it embraces digital asset regulation soon. He warned that delays could cause Pakistan to miss out on major economic opportunities.

Masud highlighted the global rise of stablecoins, noting that Pakistan is “seriously considering” introducing its own rupee-backed version. He added that a CBDC could help broaden financial access and lower remittance costs for millions of citizens.

Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan, shared that a CBDC prototype is already in development with support from the World Bank and the International Monetary Fund (IMF). A pilot phase is planned before the currency’s full launch.

Fintech startup ZAR seeks to bring stablecoins to Pakistan’s unbanked

The move toward a national stablecoin comes as ZAR, a fintech startup aiming to make dollar-backed stablecoins accessible to everyday users, raised $12.9 million in a funding round led by Andreessen Horowitz (a16z).

Other major investors included Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst. With over 100 million unbanked adults in Pakistan’s 240-million-strong population, ZAR hopes to close the financial inclusion gap through simple, crypto-based payment solutions.

According to Cointelegraph, Pakistan recently climbed six spots to rank third in the 2025 Chainalysis Global Crypto Adoption Index, reaffirming its position as one of the fastest-growing crypto markets in the world.

Pakistan opens doors to global crypto firms

In September, Pakistan officially invited international crypto exchanges and virtual asset service providers (VASPs) to apply for local licenses under its new federal regulatory framework.

The Pakistan Virtual Asset Regulatory Authority (PVARA), established under the Virtual Assets Ordinance 2025, called on leading firms to submit Expressions of Interest (EoIs) to help shape the country’s digital asset landscape. PVARA is responsible for licensing, regulating, and supervising VASPs as Pakistan seeks to establish itself as a credible player in the global crypto ecosystem.