Pakistan Explores Rupee-Backed Stablecoin Opportunity

Key Takeaways

• Pakistan is considering a rupee-backed stablecoin and CBDC to improve financial access and remittance efficiency.

• The State Bank of Pakistan is developing a CBDC prototype with support from the World Bank and IMF.

• Fintech startup ZAR raised $12.9 million to bring stablecoins to Pakistan’s unbanked population.

• Pakistan ranks third globally in crypto adoption, underscoring its growing digital finance ecosystem.

• New regulations under the Virtual Assets Ordinance 2025 open doors for global crypto firms to operate in Pakistan.

Pakistan Eyes Digital Currency To Boost Financial Access

Speaking at the Sustainable Development Policy Institute (SDPI) Conference, Pakistan Banks Association (PBA) President Zafar Masud emphasized the country’s need to enter the stablecoin ecosystem.

According to Masud, Pakistan risks missing out on $20–$25 billion in economic growth if it delays regulating digital assets.

Masud noted that the global stablecoin market continues to expand rapidly, providing countries with new tools for payments, remittances, and savings.

He revealed that Pakistan is “seriously considering a rupee-backed stablecoin”, which could play a transformative role in digital payments and cross-border transactions.

Source: Daily Times

The Case For A Rupee-Backed Stablecoin

A rupee-backed stablecoin would maintain a 1:1 peg to the Pakistani rupee, offering users stability while providing the speed and accessibility of blockchain technology.

Such a move could streamline remittance flows, lower transaction costs, and expand financial inclusion, especially for the unbanked population.

Central Bank Digital Currency In Development

Adding to the momentum, Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan (SBP), confirmed that a CBDC prototype is currently being developed in partnership with the World Bank and the International Monetary Fund (IMF).

A pilot program is expected to launch before the official rollout, signaling Pakistan’s commitment to modernizing its financial infrastructure.

Bringing Stablecoins To Pakistan’s Unbanked

While the government explores a national rupee-backed stablecoin, private fintech firms are already taking steps to bring digital currency access to Pakistan’s 240 million citizens.

ZAR Raises $12.9 Million To Expand Stablecoin Access

ZAR, a fintech startup focused on stablecoin accessibility, recently secured $12.9 million in a funding round led by Andreessen Horowitz (a16z). Other notable investors include Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst.

ZAR Enables Users To Turn Cash Into Stablecoins Via Shops

Source: ZAR

ZAR’s mission is to make dollar-backed stablecoins available to everyday users in Pakistan and other emerging markets. With more than 100 million unbanked adults, Pakistan represents a major opportunity for fintech innovation.

The company’s efforts could complement national plans for a rupee-backed stablecoin by fostering financial literacy and digital asset adoption.

Pakistan’s Rapid Growth In Global Crypto Adoption

Pakistan’s growing enthusiasm for cryptocurrency is reflected in its global ranking.

According to Chainalysis’ 2025 Global Crypto Adoption Index, Pakistan climbed six positions to secure third place worldwide, highlighting its expanding crypto user base and strong grassroots participation.

Source: X (@Bilalbinsaqib)

New Framework Under The Virtual Assets Ordinance 2025

The Pakistan Virtual Asset Regulatory Authority (PVARA), established under the Virtual Assets Ordinance 2025, is responsible for licensing, regulating, and supervising VASPs.

PVARA has urged international firms to submit Expressions of Interest (EoIs) to help shape the country’s emerging crypto ecosystem.

This regulatory progress signals that Pakistan is moving toward a structured, compliant, and innovation-friendly crypto market, aligning with international best practices.

FAQ

What is a rupee-backed stablecoin?

A rupee-backed stablecoin is a digital asset pegged to the Pakistani rupee at a 1:1 ratio. It combines the stability of fiat currency with the efficiency of blockchain transactions.

How will it benefit Pakistan’s economy?

It could reduce remittance costs, promote financial inclusion, and attract global crypto investment, potentially unlocking $25 billion in economic value.

Who is developing the CBDC in Pakistan?

The State Bank of Pakistan, with technical assistance from the World Bank and IMF, is developing the CBDC prototype and preparing for a pilot launch.

Are private companies involved in Pakistan’s stablecoin ecosystem?

Yes, fintech startups like ZAR are already introducing stablecoin solutions for unbanked users and collaborating with global investors to expand access.