Pakistan Eyes Game-Changing Rupee-Pegged Stablecoin as Crypto Demand Explodes
Crypto goes legit—with training wheels. Pakistan’s central bank reportedly mulls launching a rupee-backed stablecoin, hedging against inflation while keeping control. Because nothing says ‘decentralization’ like government-issued blockchain tokens.
The move comes as retail and institutional crypto adoption surges across emerging markets. But skeptics question whether a state-controlled stablecoin defeats crypto’s core purpose—or just gives bureaucrats a cut of the action.
Either way, it’s a calculated bet: tame volatility without surrendering monetary sovereignty. Because when your fiat’s in freefall, even a digital life raft looks tempting—especially if you get to steer it.
Private sector momentum
The discussion coincides with growing private-sector interest. Local fintech startup ZAR recently raised $12.9 million in a round led by Andreessen Horowitz (a16z), Dragonfly Capital, and Coinbase Ventures. The company aims to expand stablecoin access to Pakistan’s large unbanked population; more than 100 million adults currently lack formal bank accounts.
Meanwhile, Pakistan’s newly formed Virtual Asset Regulatory Authority (PVARA) has introduced a federal licensing framework for international cryptocurrency firms. It has invited exchanges and virtual asset service providers to apply for licenses under the Virtual Assets Ordinance 2025.
Where does India stand?
While Pakistan pushes forward its plans for a digital rupee and clearer crypto rules, its neighbor India is also reconsidering its stance.
India’s stance on stablecoins is an evolving one, from hesitation to cautious acceptance. In the past few months, regulators, banking officials, and policymakers seem to be grudgingly acknowledging their growing use in remittances and cross-border payments.
More Indians working abroad now use USDT (Tether) to send money home, drawn by faster and cheaper transfers than traditional banking.
As remittances, fintech activity, and use of digital assets keep growing, India is apparently moving towards a clearer direction on stablecoins and digital currencies. Both India and Pakistan are making cautious yet significant steps toward creating safer, more inclusive digital finance systems.
Also Read: India’s Gujarat CID Busts ₹200 Cr Crypto Racket Linked to Pakistan
