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Pakistanis may have invested around $20–30 billion in crypto-linked assets, according to experts at the Sustainable Development Policy Institute’s annual conference. However, the country still has no legal framework to recognise or monitor virtual asset transactions. As a result, the true size of Pakistan’s crypto market remains unknown.
Speakers speculated that Pakistan’s crypto trading volumes could reach $300 billion in the coming years. This figure is close to Pakistan’s $400 billion GDP, highlighting the scale of the opportunity. Yet, the lack of regulation continues to hold the sector back.
Experts Push for Swift Regulatory Action
Experts urged the government to move quickly. They argued that further delays could lock Pakistanis out of a major economic opportunity. They also stressed that weak regulation and cybersecurity gaps could expose consumers to fraud, theft, and financial instability.
Speakers recommended a phased and cautious legalisation strategy. They advised starting with a Central Bank Digital Currency (CBDC). This would help reduce remittance costs and bring digital transactions under state oversight.
Pakistan Banks Association President Zafar Masud said Pakistan could capture $20–25 billion in economic gains if it acts early. He added that the government was seriously considering a rupee stablecoin as part of the transition. However, he noted that cybersecurity challenges and negative public perception remain major hurdles.
Digital Currency Prototype in Development
State Bank officials confirmed that work on a digital currency prototype has been underway since 2022. The effort is supported by the World Bank and the IMF. A pilot phase will begin after testing is completed.
Experts agreed that digital financial systems could:
- Lower remittance costs
- Improve financial inclusion
- Align Pakistan with global fintech trends
However, they warned that delaying regulation any further could leave Pakistan behind the next wave of global digital finance.
