(Daily News) Pakistan Explores Rupee-Backed Stablecoin Amid $25 Billion Crypto Growth Potential

A New Chapter for Pakistan’s Financial Future

Pakistan is preparing to enter the digital finance era with a bold plan, the creation of a rupee-backed stablecoin. The move comes as the country’s banking and fintech leaders estimate a potential $20–30 billion opportunity in the cryptocurrency economy. The proposal aims to modernize Pakistan’s payment system, improve cross-border transactions, and bring millions of unbanked citizens into the digital economy.

Officials have also confirmed that Pakistan’s central bank is working with the World Bank and International Monetary Fund to design a framework for a national digital currency. The idea is to combine regulatory oversight with technological innovation, positioning Pakistan as a forward-thinking player in Asia’s growing crypto landscape.

Why a Rupee-Backed Stablecoin Matters

A rupee-backed stablecoin would be a digital token tied to the Pakistani rupee’s value. It could allow citizens to transact instantly, without relying on volatile cryptocurrencies or costly intermediaries. Unlike traditional crypto assets, stablecoins are designed to maintain a steady value, making them more suitable for daily transactions, remittances, and savings.

For Pakistan, which receives billions of dollars in foreign remittances each year, such a system could drastically reduce transfer costs and time. Families could send and receive money within minutes, directly into their digital accounts, instead of waiting days for bank clearance.

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 in the world. This surge in adoption shows that Pakistanis are already engaging with digital assets, and a rupee-backed stablecoin could channel that activity into a safer, regulated ecosystem.

The idea also supports the government’s goal of expanding financial inclusion. With millions still outside the formal banking system, a digital rupee could help bridge the gap, offering an affordable, accessible way to store and transfer funds through a smartphone or digital wallet.

Pakistan Hit #3 in Crypto adoption. Source: BilalBinSaqib

How Pakistan Can Unlock the $25 Billion Opportunity

Analysts estimate that the country could generate up to $25 billion in annual value by embracing blockchain-based systems and regulated crypto adoption. This figure includes savings from remittance fees, new fintech innovations, and an expanding digital economy.

If properly implemented, a regulated crypto and stablecoin framework could create thousands of jobs in software development, financial services, and cybersecurity. It could also attract foreign investment and boost exports of Pakistan’s growing tech sector.

The challenge, however, lies in execution. Policymakers must ensure that any stablecoin initiative is secure, transparent, and fully backed by reserves to maintain user confidence. Regulatory clarity, strong auditing, and coordination with global standards like anti-money laundering (AML) and know your customer (KYC) compliance will be essential.

Lessons from Other Countries

Countries such as Singapore, the United Arab Emirates, and Hong Kong have already advanced digital currency projects, and their results offer lessons for Pakistan. Singapore’s regulatory framework encourages innovation while maintaining strict compliance standards. The UAE’s central bank has tested its digital dirham for cross-border payments. Hong Kong, meanwhile, has introduced stablecoin guidelines for licensed issuers.

Pakistan can follow a similar path by balancing regulation with innovation. Instead of banning cryptocurrencies, the government could allow regulated entities to issue rupee-backed tokens. This would enable citizens to transact digitally while ensuring state oversight.

By combining financial discipline with innovation, Pakistan could become a regional leader in digital currency adoption, a move that would support both domestic commerce and international trade.

The Push for Clear Regulation

Pakistan’s crypto market has grown significantly over the past five years despite the lack of regulation. Millions of Pakistanis hold cryptocurrencies or use decentralized finance platforms, often without government protection. The State Bank of Pakistan (SBP) has previously warned against unregulated crypto trading, but full bans have proven ineffective.

The new stablecoin proposal marks a more balanced approach. Instead of rejecting digital assets, the focus is now on safe integration, ensuring users can transact securely through licensed platforms. A clear legal framework could help Pakistan minimize risks like fraud, volatility, and capital flight while encouraging responsible innovation.

If executed well, the rupee-backed stablecoin could also prepare the country for a central bank digital currency (CBDC). A CBDC would operate under government control but leverage blockchain for transparency and efficiency. It would also strengthen Pakistan’s control over its monetary system while reducing reliance on physical cash.

The Role of Crypto Exchanges and Innovation

As stablecoins and digital currencies become part of Pakistan’s financial system, local and international exchanges will play a vital role in adoption. Regulated trading platforms can ensure compliance while making it easier for users to convert between rupees, stablecoins, and other digital assets.

Many citizens already use apps and exchanges informally to buy crypto, often through peer-to-peer transactions. Formal regulation would make this process safer and more transparent. If Pakistan partners with the best crypto exchange operators, it could ensure low fees, user protection, and smooth integration between fiat and digital money.

These changes would not only enhance user trust but also strengthen Pakistan’s global financial reputation, showing that it can innovate responsibly while protecting investor interests.

Challenges Ahead

Launching a national stablecoin will not be easy. Pakistan faces multiple hurdles, including economic instability, currency fluctuations, and limited digital infrastructure in rural areas. Building the right technical and legal framework will require collaboration between the government, private-sector, and international organizations.

There’s also the challenge of public education. Many citizens still misunderstand how cryptocurrencies work, and without proper awareness, they could fall prey to scams or misinformation. Authorities will need to invest in education campaigns and digital literacy programs to build confidence and ensure safe adoption.

Finally, maintaining the stablecoin’s peg to the rupee will require strong reserves and transparent audits. Any mismanagement could trigger a loss of trust, which would damage the project before it matures.

A Defining Moment for Pakistan

Pakistan’s plan to launch a rupee-backed stablecoin could reshape its financial landscape. It represents a shift from caution to collaboration, a recognition that digital assets can be part of a secure and regulated financial future.

If successful, this initiative will give Pakistan a competitive edge in the digital economy, create jobs, and expand financial access for millions. It’s a chance to move beyond outdated systems and embrace innovation responsibly.

By combining solid regulation, modern technology, and global partnerships, Pakistan can build a model for other emerging markets to follow. The world will be watching closely as the country turns vision into reality, one digital transaction at a time.