Pakistan is preparing to take a significant step forward in digital assets by exploring the launch of a rupee-backed stablecoin and a central bank digital currency (CBDC). The project aims to increase financial inclusion and capitalise on the economic opportunities offered by the growing cryptocurrency market.
A potential market worth $20–$25 billion
At a recent industry event, a representative from Pakistan’s banking sector estimated that the country could generate between $20 billion and $25 billion in cryptocurrency-related profits if regulations were adopted promptly. This highlights the strategic importance of the digital ecosystem for Pakistan’s economy.
Stablecoins and CBDCs: two key pillars
The project comprises two components:
- The first is a rupee-backed stablecoin designed to facilitate access to digital services and reduce the cost of remittances, particularly for the unbanked population.
- The second is the CBDC, for which a prototype is already under development with international support, with a view to a phased roll-out.
Regulation and openness to crypto stakeholders
Pakistan is also progressing on its regulatory framework for digital assets. A new authority dedicated to virtual asset service providers (VASPs) has been established to oversee exchanges and service providers in this field. To position the Pakistani market as an emerging crypto hub, the country is inviting international players to participate in this development.
The challenges of financial inclusion
In a country with a population of over 240 million, it is estimated that more than 100 million adults in Pakistan do not have a bank account. Authorities aim to bridge the banking gap, facilitate cross-border payments and promote access to financial services by enabling the use of stablecoins and the CBDC.
A market to watch
Pakistan has recently improved its position in the global cryptocurrency adoption index, highlighting the country’s momentum in the sector. The introduction of a national stablecoin and a CBDC could accelerate this trend. However, success will depend heavily on the effective implementation of regulation, user confidence and collaboration with companies in the digital sector.
