In a series of bold moves to cement its position in the global digital economy, Pakistan is launching a national stablecoin, establishing a comprehensive regulatory authority, and attracting major international investment. These initiatives, driven by a huge and active crypto user base, aim to harness blockchain technology for economic growth and financial inclusion.
A Sovereign Push into Digital Assets
At the forefront of this digital transformation is Bilal Bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), who recently announced the upcoming launch of a state-backed stablecoin at Binance Blockchain Week in Dubai. This bold initiative suggests that Pakistan is ready to take the plunge into a world where digital currencies play a key role in national economies. As Saqib articulated,
“Why should we be at the tail end of it when we have the muscle and the adoption?”Bilal Bin Saqib, Chairman of PVARA
The stablecoin, pegged to a fiat currency, aims to help the government collateralize its debt and boost economic stability.
This initiative closely follows Pakistan’s unveiling of its first Strategic Bitcoin Reserve earlier this year—a significant shift indicating a long-term commitment to blockchain-based finance. With over 40 million crypto users and an annual trading volume exceeding $300 billion, Pakistan has emerged as one of the world’s most active frontiers in the cryptocurrency market. Embracing this potential brings forth not only the prospect of national financial growth but also aligns Pakistan with global digital trends.
Building the Regulatory Foundation: The Virtual Assets Ordinance
The foundation for these ambitious plans was laid earlier this summer when President Zardari approved the ‘Virtual Assets Ordinance, 2025,’ establishing the Pakistan Virtual Asset Regulatory Authority (PVARA). Under constitutional powers, this ordinance empowers PVARA to oversee and regulate all virtual asset service providers in the country, ensuring compliance with international standards like the Financial Action Task Force (FATF) guidelines. This major step aims to fortify Pakistan’s financial system against illicit activities while fostering a responsible digital asset environment.
The Virtual Assets Ordinance also features an innovative regulatory sandbox designed to test emerging technologies within a controlled framework, allowing startups and fintech solutions a safe space to explore new ideas. Additionally, a Sharia Advisory Committee will ensure compliance with Islamic financial principles, reflecting Pakistan’s commitment to integrating modern technology with its cultural and religious values. A Virtual Assets Appellate Tribunal will further guarantee that all regulatory decisions are subject to rigorous oversight, emphasizing the country’s determination to create a transparent and accountable regulatory landscape.
Private Sector Momentum and Financial Inclusion
Not to be outdone by governmental efforts, the privatest sector is also leveraging the crypto wave to push forward financial inclusion. Fintech startup ZAR recently secured $12.9 million in funding, spearheaded by the prominent venture firm Andreessen Horowitz. The funding will facilitate ZAR’s mission to expand access to dollar-backed stablecoins, particularly targeting over 100 million unbanked adults in Pakistan. By distributing stablecoins through local retail networks, ZAR aims to democratize access to digital currency, allowing everyday citizens to exchange cash for stablecoins with the ease of scanning a QR code.
This innovative model not only taps into the latent demand for accessible financial tools but also resonates with the larger governmental vision for financial inclusion. As representatives from the Pakistan Crypto Council noted,
“Clear and innovation-friendly crypto regulation is a key driver of economic growth.”Pakistan Crypto Council
The private sector’s engagement, combined with robust government regulation, positions Pakistan as an emerging case study for how developing nations can implement digital currencies to encourage financial democratization.
Shaping Pakistan’s Digital Financial Future
As Pakistan forges ahead into the realms of stablecoins and comprehensive regulation, the implications extend beyond national borders. By creating a framework that balances innovation with compliance, Pakistan is not just catering to its local market but also inviting international crypto businesses to participate in its evolving financial landscape. The country’s commitment to transparent regulatory practices could position it among the leaders in blockchain adoption globally.
This unified effort from the government and the private sector could transform the way digital assets are perceived and utilized in emerging markets. With its tech-savvy youth driving innovation and a regulatory environment that welcomes new ideas, Pakistan stands on the threshold of becoming a key player in the global blockchain economy. As they say, in the world of finance, fortune favors the bold—and Pakistan is certainly taking a bold leap into its financial future.
A Digital Leap Into Tomorrow
Pakistan’s ambitious plans for a national stablecoin and a robust regulatory framework are destined to reshape not only its economic landscape but also serve as a template for other nations looking to engage with blockchain technology. As the country navigates the complexities of digital finance, it embodies the notion that with the right governance, technology can be a powerful catalyst for including the unbanked in the global economy. The road ahead may be challenging, but Pakistan’s clear vision and proactive measures could lead to a prosperous digital era that others will aspire to follow.
