Pakistan Eyes Rupee Stablecoin as Experts Warn of $25 Billion Missed Opportunity

Pakistan is actively pursuing digital currency initiatives, including developing a Central Bank Digital Currency (CBDC) prototype with the World Bank and IMF, which could significantly lower remittance costs. Financial leaders, like Zafar Masud of the Pakistan Banks Association, urged the government to prioritize stablecoins first, warning that failing to establish clear digital asset rules could result in missing out on $20 billion to $25 billion in crypto-related economic growth. This urgency is underscored by Pakistan ranking third globally in crypto adoption, boasting over 40 million users and substantial private investment in the sector, despite nearly half the population being unbanked. The country has established the PVARA regulatory body and is inviting licensed international crypto firms to operate, while also planning a strategic Bitcoin reserve and allocating significant electricity for mining. However, these plans, particularly the mining allocation, have drawn scrutiny from the IMF, and Pakistan must balance innovation with adherence to Islamic finance principles.

(Source：Brave New Coin)