ISLAMABAD: Pakistanis are estimated to have invested $20-30 billion in asset-backed crypto instruments, experts told the Sustainable Development Policy Institute (SDPI) Conference on Friday, The News reported.
They projected that crypto trading by Pakistanis could reach $300 billion — a figure approaching the country’s approximately $400 billion in GDP.
The experts stressed these figures are indicative only, given the absence of a legal framework to regulate or document crypto activity, which leaves the true scale unverified.
They warned Pakistan risks forfeiting $25 billion in economic opportunities if it delays regulating cryptocurrencies and virtual assets, urging a swift but cautious approach to avoid falling behind in global adoption.
They cautioned that weak regulations and cybersecurity risks could hinder progress. Both local and international experts at the conference urged the government to adopt a cautious, phased approach toward legalising cryptocurrency. Experts also recommended that Pakistan introduce a Central Bank Digital Currency (CBDC) as a first step, saying it could significantly reduce the costs associated with remittances from overseas.
Pakistan Banks Association (PBA) President Zafar Masud noted that the country had the potential to tap $20-25 billion in crypto-related opportunities but stressed the need for proper alignment and regulatory safeguards. He emphasised prioritising consumer protection and suggested that Pakistan introduce stablecoins in the initial phase.
Zafar Masud said the event marked “the first kind of public discussion in Pakistan” on the subject, emphasising the urgency of adopting digital financial systems. “There are a lot of misunderstandings about digital currency and different thoughts, but we cannot ignore its future and the coming revolution,” he said.
Masud added that “there is around $27.6 trillion worth of stablecoins globally and increasing,” calling the development both “a threat to the US dollar’s sovereignty” and “a smart step by Washington.” He urged Islamabad to act decisively, saying: “Shape the rules before they shape you.” He also revealed that Pakistan is “seriously considering a rupee stablecoin”.
He described the Central Bank Digital Currency (CBDC) as a transition “away from printed currency to digitalised currency,” calling it “a clear-cut case of financial inclusion.” However, Masud warned that “cybersecurity remains a major challenge” and that “regulatory ambiguity and negative public perception” persist in Pakistan.
Singapore-based expert Yara Wu, who has visited Pakistan four times since November 2024, said that adopting a CBDC could substantially lower remittance transfer costs for Pakistan, offering a secure and efficient alternative to existing channels.
Sajid Amin of SDPI said the country needs a clear, consistent approach to digital assets. “Challenges are also there,” he said. “Cyber protection is an issue — how safe it is and how to safeguard from scams.”
Faisal Mazhar, Deputy Director of Payments at the SBP, confirmed that “we have been working on digital currency since 2022,” with support from the World Bank and IMF. He described the CBDC as “an evolutionary process,” adding that a prototype is under development before launching a pilot phase.
Experts at the conference agreed that digital finance could significantly cut remittance costs, expand financial inclusion, and align Pakistan with global fintech trends — but warned that delay could mean missing a transformative economic opportunity.