Pakistan is considering a rupee-backed stablecoin and a central bank digital currency (CBDC) to expand financial inclusion.
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Pakistan is considering launching a rupee-backed stablecoin, as experts warn that delays in regulating digital assets could cost the country up to $25 billion in lost economic opportunities.
Speaking at the Sustainable Development Policy Institute (SDPI) Conference on Friday, Pakistan Banks Association (PBA) President Zafar Masud said the nation could unlock $20–$25 billion in crypto-related growth, to a report by local news outlet Daily Times.
Masud pointed out the booming global stablecoin market, adding that Pakistan is “seriously considering a rupee-backed stablecoin” and that a Central Bank Digital Currency (CBDC) could improve financial access while reducing remittance costs.
Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan, revealed that a CBDC prototype is already being developed with assistance from the World Bank and International Monetary Fund (IMF), with a pilot phase planned before full rollout.
Related:
ZAR aims to bring stablecoins to Pakistan’s unbanked
Pakistan’s plan to launch its own stablecoin comes shortly after ZAR, a fintech startup working to make dollar-backed stablecoins accessible to everyday users in Pakistan and other emerging markets, led by Andreessen Horowitz (a16z).
Other investors included Dragonfly Capital, VanEck Ventures, Coinbase Ventures and Endeavor Catalyst. Targeting Pakistan’s 240 million population, where over 100 million adults remain unbanked, ZAR aims to bridge the financial inclusion gap through stablecoin access.
As Cointelegraph reported, Pakistan jumped six places to secure third position in , cementing its status as one of the fastest-growing cryptocurrency markets worldwide.
Related:
Pakistan invites global crypto firms to apply for licenses
In September, Pakistan opened its doors to international crypto exchanges and virtual asset service providers (VASPs), under a new federal regulatory framework.
The Pakistan Virtual Asset Regulatory Authority (PVARA) urged leading firms to submit Expressions of Interest (EoIs) to help shape the country’s emerging digital asset industry. PVARA, , is tasked with licensing, regulating and supervising VASPs.
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