Pakistan Takes Major Step Toward Launching Its Own Stablecoin
Pakistan's central bank is reportedly moving forward with plans to launch a state-backed stablecoin—a digital currency pegged to the Pakistani rupee. This move signals a significant shift in the nation's approach to financial technology and digital sovereignty.
Why This Matters
For a country with a massive unbanked population and persistent remittance challenges, a national stablecoin isn't just a tech experiment. It's a potential game-changer. It could slash the cost and time of sending money home for millions overseas, bypassing traditional banking bottlenecks and hefty wire transfer fees.
The Regulatory Tightrope
Launching a sovereign digital currency is a high-wire act. The State Bank of Pakistan will need to walk the line between innovation and control, ensuring the stablecoin's peg holds firm against volatility while preventing it from becoming a tool for the capital flight that often plagues emerging markets. Getting the monetary policy mechanics right will be crucial—too tight, and it stifles use; too loose, and you risk a digital bank run.
A Regional Digital Race
Pakistan's push places it squarely in the middle of a burgeoning digital currency race among developing economies. Nations are scrambling to modernize their financial infrastructure, seeing state-backed digital assets as a way to boost financial inclusion and tighten control over their monetary systems. It's a bold bet on blockchain as public infrastructure, not just speculative crypto.
The Bottom Line
If successful, Pakistan's digital rupee could demonstrate how blockchain technology can serve national economic goals beyond trading and speculation. Of course, watching a central bank try to harness decentralized tech for centralized control is a classic finance irony—like using a rebel's manifesto to write government policy. The real test won't be the launch, but whether it actually improves lives without adding a new layer of digital friction.
Push for clear crypto regulation
According to a post on X by the Pakistan crypto Council, Saqib also joined a panel discussion on the future of digital assets and emerging-market regulation.
He emphasized that countries like Pakistan depend on clear and innovation-friendly crypto rules to support economic growth. The council added that Pakistan’s work on stablecoins, digital frameworks, and financial inclusion could become useful examples for other developing nations.
The stablecoin initiative is part of a broader digital shift. In July, Pakistan and El Salvador signed an agreement to work together on Bitcoin and cryptocurrencies. Saqib met El Salvador’s President Nayib Bukele to discuss Bitcoin mining, energy use, reserves, and education.
Earlier this year, the government began developing a Strategic bitcoin Reserve and allocated 2,000 megawatts of electricity for large-scale Bitcoin mining and AI data centers.
Pakistan plans AI migration crackdown
Beyond finance, Pakistan is preparing to use artificial intelligence to tackle illegal migration, particularly the use of fake travel documents.
Authorities say an AI-based system will begin testing in Islamabad from January to help identify ineligible travelers and block the use of forged visas. Officials have said there will be strict action against agents and companies involved in producing fraudulent paperwork.
In a related meeting, Interior Minister Mohsin Naqvi and Federal Minister for Overseas Pakistanis Chaudhry Salik Hussain agreed to overhaul the protector issuance system to streamline immigration processes and improve passenger facilitation.
Departments have been given one week to propose technological upgrades. Naqvi reaffirmed that individuals deported for document violations will not be issued new visas.
Together, these steps highlight Pakistan’s growing adoption of digital technologies to strengthen governance and close gaps where misuse has been common.
Also Read: Hackers Exploit USPD Stablecoin via Proxy Deployment Vulnerability
