Pakistanis are estimated to have invested between $20 billion and $30 billion in asset-backed crypto instruments, experts revealed during the Sustainable Development Policy Institute (SDPI) Conference on Friday.
According to a report by The News, the experts warned that Pakistan could lose out on $25 billion in economic opportunities if it delays regulating cryptocurrencies and virtual assets. They urged the government to act swiftly but carefully to keep pace with the global financial shift toward digital currencies.
They projected that crypto trading by Pakistanis could reach a staggering $300 billion, nearly equal to the country’s current GDP of around $400 billion. However, they cautioned that these figures are based on estimates since Pakistan lacks a legal framework to regulate or document crypto activities, leaving the true scale of investment unverified.
Experts at the conference also raised concerns over weak regulations and cybersecurity risks that could hinder progress. They recommended that Pakistan adopt a cautious, phased approach to legalising cryptocurrency and introduce a Central Bank Digital Currency (CBDC) as a first step. The CBDC could significantly reduce the costs associated with remittances from overseas, they said.
Zafar Masud, President of the Pakistan Banks Association (PBA), noted that Pakistan has the potential to tap into $20–25 billion worth of crypto-related opportunities but stressed the importance of regulatory alignment and safeguards. He emphasised that consumer protection should be a top priority, suggesting that Pakistan could start with stablecoins in the initial phase.
“This is the first public discussion on this subject in Pakistan, and we must act quickly to adopt digital financial systems,” said Masud. He pointed out the increasing value of stablecoins globally, which now amount to $27.6 trillion, calling the rise of digital currencies both a “threat to the US dollar’s sovereignty” and “a smart move by Washington.” He urged Islamabad to act decisively, adding, “Shape the rules before they shape you.”
Masud also revealed that Pakistan is seriously considering a rupee stablecoin and described the CBDC as a natural step toward financial inclusion, moving from printed currency to digital currency. However, he warned that cybersecurity remains a significant challenge and that regulatory ambiguity and public skepticism persist in Pakistan.
Yara Wu, a Singapore-based expert who has visited Pakistan four times since November 2024, virtually addressed the conference, emphasizing that adopting a CBDC could substantially lower remittance transfer costs and provide a more secure and efficient alternative to current channels.
Sajid Amin of SDPI added that Pakistan needs a clear and consistent approach to digital assets, acknowledging that cyber protection is a key concern. He emphasized the need to safeguard users from scams.
Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan (SBP), confirmed that the central bank has been working on digital currency since 2022 with support from the World Bank and IMF. He described the CBDC as an “evolutionary process” and shared that a prototype is under development before moving to a pilot phase.
Experts at the conference agreed that digital finance has the potential to lower remittance costs, expand financial inclusion, and align Pakistan with global fintech trends. However, they stressed that delaying regulation could result in Pakistan missing a transformative economic opportunity.
