The Pakistani government is poised to step into the digital age with ambitious plans for a rupee-backed stablecoin and a Central Bank Digital Currency (CBDC). By capitalizing on the burgeoning cryptocurrency market, which could yield up to $25 billion in economic benefits, these initiatives are designed to enhance financial inclusion while contending with regulatory hurdles and cybersecurity challenges.
Digital Currency Developments: A Sign of Progress
The conversation surrounding digital currency in Pakistan is gaining momentum, particularly with insights from Zafar Masood, President of the Pakistan Bankers Association, who stated that the government is “seriously considering issuing a rupee-backed stablecoin.” This optimistic outlook reflects the urgent need for the nation to adapt to the global shift towards digital currencies. In collaboration with the World Bank and the International Monetary Fund (IMF), the central bank is working on a CBDC prototype, rooting for financial accessibility and aiming to reduce remittance costs for millions of Pakistanis.
As a part of a progressive pilot phase, this CBDC aims to modernize the financial framework within the country. Notably, Masood emphasized the importance of seizing the moment, stating,
“We cannot ignore the future and the coming revolution.”
The shift to a digital currency system not only promises efficiency and inclusivity but also marks a pivotal moment in redefining Pakistan’s economic landscape.
Economic Opportunities and Risks: The Time is Now
The potential economic impact of the cryptocurrency sector in Pakistan is staggering. Experts estimate that the country stands to gain between $20 billion to $25 billion from the rapid growth of digital assets. However, this opportunity is at risk, with the looming threat of delaying regulatory frameworks that could cost Pakistan the same amount in lost economic potential. The burgeoning crypto market, which sees Pakistani investors estimated to have funneled between $20 billion to $30 billion into asset-backed crypto instruments, leads to projections that trading could soar as high as $300 billion—nearly equating to the nation’s GDP.
Zafar Masood underlined the urgency of addressing misconceptions surrounding digital currency, saying,
“There are a lot of misunderstandings about digital currency, but we cannot ignore its future.”
As Pakistan tussles with regulatory ambiguities and cybersecurity risks, it finds itself at a crucial juncture—either embracing this financial evolution or risking significant economic losses.
Regulatory Framework and the Role of the Pakistan Crypto Council
To facilitate orderly growth within the cryptocurrency sector, the Pakistan Crypto Council (PCC) was established in March 2025. This body emerged from the need for a consolidated approach towards drafting effective policies and regulations overseeing digital assets in Pakistan. Collaborating with federal agencies, the PCC is spearheading efforts to create a comprehensive national framework to govern this nascent yet vibrant sector.
Sajid Amin of the Sustainable Development Policy Institute (SDPI) raised awareness of the hurdles the industry faces.
“Cyber protection is an issue—how safe it is and how to safeguard from scams,”
he noted, emphasizing the significance of robust security measures alongside regulatory clarity. The introduction of the Virtual Assets Regulatory Authority Ordinance further highlights the government’s commitment to establishing an independent regulator that can provide oversight while fostering innovation.
Leadership in Digital Assets: A Collective Endeavor
Leading the charge in this digital revolution is Bilal Bin Saqib, the inaugural CEO of the PCC and a pivotal advisor to the Prime Minister on blockchain initiatives. Acclaimed as a Forbes 30 under 30 honoree, Saqib’s expertise in social entrepreneurship combines with his vision for innovative regulatory frameworks that could redefine crypto within Pakistani society. His background offers a unique perspective as he seeks to promote education and awareness concerning cryptocurrency.
Appointed to spearhead the national digital asset strategy, Saqib is tasked with leading discussions that surround the implementation of blockchain technologies within Pakistan. His leadership heralds a necessary shift toward modern financial practices that align the country’s policies with international norms.
Broader Economic Reforms: The Integral Role of Foreign Investment
The Special Investment Facilitation Council (SIFC) further complements these digital currency initiatives by acting as a “single window” to streamline foreign investment processes. Established in June 2023 in response to declining foreign investments, the council has already registered a remarkable 22% increase in foreign direct investment (FDI), indicating increased confidence in Pakistan’s economic landscape.
With a keen focus on sectors such as IT and agriculture, the SIFC aims to expedite the necessary structural reforms to attract sustainable investments. The chairman of the SIFC asserted,
“Our commitment to improving the investment landscape in Pakistan is stronger than ever,”
indicating a drive towards collaboration that could support developing robust digital infrastructures to support advancements in blockchain and cryptocurrency.
Looking Ahead: A Digital Future Awaits
As Pakistan stands on the brink of a digital transformation, the push for a rupee-backed stablecoin and a CBDC highlights a crucial transition towards modern financial systems. By seizing the economic opportunities presented by digital currencies, the government signals its readiness to embrace innovation while navigating challenges in regulation and public perception.
The landscape of cryptocurrency presents both risks and rewards; successful navigation could position Pakistan as a leader within the global fintech space. As Masood succinctly encapsulated,
“Shape the rules before they shape you”
—a guiding principle for Pakistan as it embarks on this promising yet challenging journey into the world of digital finance.
