Pakistan Eyes Rupee-Backed Stablecoin Amid $25B Crypto Boom
Officials weigh a rupee-backed token and CBDC pilot as Pakistan opens licensing to global crypto firms
Pakistan is weighing a rupee-pegged stablecoin and fast-tracking a central bank digital currency as officials warn that slow regulation could forfeit up to $25 billion in economic gains.
At the Sustainable Development Policy Institute conference, Pakistan Banks Association president Zafar Masud said the country risks leaving money on the table unless it captures crypto-related activity, citing the rapid expansion of stablecoins worldwide. He said policymakers are “seriously considering” a rupee-backed token, while a CBDC could widen access to finance and cut the cost of remittances that millions of overseas Pakistanis send back home.
Faisal Mazhar, deputy director of payments at the State Bank of Pakistan, said a CBDC prototype is in development with support from the World Bank and the IMF, with a pilot planned ahead of any broad launch.
Private sector momentum is building in parallel. ZAR, a fintech focused on bringing dollar stablecoins to everyday users in Pakistan and other emerging markets, raised $12.9 million in a round led by Andreessen Horowitz. Dragonfly, VanEck Ventures, Coinbase Ventures and Endeavor Catalyst also participated. With a population of 240 million—and more than 100 million adults still unbanked—Pakistan is a prime market for low-cost, always-on digital dollars and future rupee tokens.
Grassroots adoption is already high. Pakistan climbed six places to rank third in Chainalysis’s 2025 Global Crypto Adoption Index, signaling one of the fastest-growing user bases globally.
Regulation is trying to catch up. In September, the Pakistan Virtual Asset Regulatory Authority began inviting global exchanges and virtual asset service providers to apply for licenses under the new Virtual Assets Ordinance 2025. PVARA will license, regulate and supervise market participants, a crucial step if Pakistan is to turn its crypto enthusiasm into measurable economic growth and a formal stablecoin ecosystem. Execution will hinge on clear rules, security, and interoperability across platforms.
