Pakistan Considers Rupee-Backed Stablecoin and CBDC for Financial Inclusion Gains

• Pakistan ranks third globally in crypto adoption, highlighting its potential for stablecoin growth.

• The State Bank of Pakistan is developing a CBDC prototype with World Bank and IMF support to reduce remittance costs.

• Experts estimate $20–$25 billion in lost opportunities if digital asset regulations are delayed, per the Pakistan Banks Association.

Pakistan eyes rupee-backed stablecoin and CBDC for financial inclusion amid $25B crypto opportunity. Discover how these initiatives could transform remittances and access for 100M unbanked adults. Stay updated on global crypto trends.

What is Pakistan’s Rupee-Backed Stablecoin Initiative?

Pakistan’s rupee-backed stablecoin is a proposed digital asset pegged to the Pakistani rupee, designed to provide stability in cryptocurrency transactions while promoting financial inclusion. Announced by banking leaders, this initiative aims to integrate digital currencies into the national economy, potentially unlocking significant growth. It builds on the country’s high crypto adoption rates, positioning Pakistan as a key player in emerging market innovations.

How Will the CBDC Enhance Financial Access in Pakistan?

Pakistan’s central bank digital currency (CBDC) prototype is under development with assistance from the World Bank and International Monetary Fund, focusing on improving access for the unbanked population. According to Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan, the CBDC could streamline remittances, which total billions annually, by cutting intermediary costs by up to 30% as estimated by financial experts. This structured digital rupee would enable secure, low-cost transactions, particularly for the over 100 million unbanked adults, fostering broader economic participation. Short sentences highlight key benefits: faster settlements, enhanced security, and integration with mobile platforms already popular in the region.

Pakistan is considering a rupee-backed stablecoin and a central bank digital currency (CBDC) to expand financial inclusion.

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, according 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: Demographics will ‘leapfrog’ Bitcoin adoption in Pakistan — Bilal Bin Saqib

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, raised $12.9 million in a funding round 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 Chainalysis’ 2025 Global Crypto Adoption Index, cementing its status as one of the fastest-growing cryptocurrency markets worldwide.

Pakistan ranks third in global crypto adoption. Source: Bilal Bin Saqib

Related: Crypto helps emerging economies bypass legacy financial constraints

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), inviting them to apply for licenses 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, set up under the Virtual Assets Ordinance 2025, is tasked with licensing, regulating and supervising VASPs.

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Frequently Asked Questions

What Are the Potential Economic Benefits of Pakistan’s Rupee-Backed Stablecoin?

The rupee-backed stablecoin could generate $20–$25 billion in economic opportunities by integrating Pakistan into the global digital asset economy, as stated by Pakistan Banks Association President Zafar Masud. It would facilitate efficient remittances and attract foreign investment, directly benefiting unbanked populations through accessible digital finance tools. Regulatory clarity is key to realizing these gains without delays.

Is Pakistan’s CBDC Ready for Launch?

Pakistan’s CBDC is in the prototype stage, developed with support from the World Bank and IMF, and a pilot phase is scheduled soon. This digital currency aims to modernize payments, making them faster and more inclusive for everyday users across the country, much like how voice assistants explain complex topics in simple, conversational terms.

Key Takeaways

• High Crypto Adoption: Pakistan’s third-place ranking in the 2025 Global Crypto Adoption Index underscores its rapid growth and readiness for stablecoin integration.
• Financial Inclusion Focus: Initiatives like the rupee-backed stablecoin and CBDC target over 100 million unbanked adults, potentially reducing remittance costs significantly.
• Regulatory Momentum: The establishment of PVARA invites global firms to participate, ensuring a structured approach to digital asset supervision and innovation.

Conclusion

Pakistan’s pursuit of a rupee-backed stablecoin and CBDC represents a strategic step toward financial inclusion and economic expansion in the digital age. By addressing regulatory gaps and leveraging high crypto adoption, the nation could tap into substantial opportunities while mitigating risks. As these developments unfold, staying informed on Pakistan CBDC progress will be essential for investors and users alike, promising a more connected and efficient financial future.