Why is Pakistan quietly experimenting with stablecoins?
As the world embraces digital financial systems, Pakistan is also gradually moving toward a significant financial transformation — with stablecoins at the center of this change.
Stablecoins are digital currencies that are pegged to stable assets like the US dollar, euro, or gold, which reduces their price volatility. For countries like Pakistan, where inflation and the value of the rupee are continuously declining, stablecoins are becoming an attractive alternative.
🌍 Youth's interest in digital finance
More than 64% of Pakistan's population is under 30 years old, and mobile internet usage is rapidly increasing. The youth are turning towards alternative sources like stablecoins, frustrated with banks' slow and expensive services, to:
Safeguard their funds,
Easily receive remittances from abroad,
And perform instant digital transactions.
🔍 Quiet but significant progress
On April 26, a delegation from World Liberty Financial visited Islamabad and signed an agreement with the Pakistan Crypto Council (PCC) to start working on stablecoins, tokenized assets, and the regulatory sandbox framework. Minister Bilal bin Saqib led the project.
Meanwhile, the Ministry of Finance allocated 2000 megawatts of electricity for crypto mining — with the intent of attracting foreign investment.
But surprisingly, just a few days later, the State Bank of Pakistan and the Ministry of Finance reminded that cryptocurrencies (including stablecoins) are still illegal in Pakistan.
This contradiction indicates that the government is caught in a tug-of-war policy — apparently opposing but secretly trying to encourage development.
💸 Convenience for freelancers and small businesses
Pakistani freelancers prefer stablecoins because they are:
They are faster compared to banking.
Transaction fees are low.
And secure.
Small businesses are using stablecoins as a hedge against the volatility of the rupee and consider them an alternative to dollar banking.
🏦 A new gateway to financial inclusion
A large number of individuals in Pakistan are outside the banking system, especially in rural areas. Stablecoins, if under appropriate regulation, can:
Provide digital payments,
Microloans,
And savings facilities — without a bank account.
Experiments like EasyPaisa and JazzCash have already proven that Pakistan is ready for digital finance.
🌐 Opportunity to gain global trust
If the government effectively regulates stablecoins, they can:
Enable more efficient remittances,
Can increase global trade,
And could connect the Pakistani economy to the global financial system.
Partnerships with international fintech companies, regulated remittance testing, and funding local blockchain startups could make Pakistan a regional leader in digital finance.
⚠️ Do not ignore the risks
Unregulated use can create several issues:
Risk of fraud and hacking,
Capital flight abroad,
And end control over domestic monetary policy.
Pakistan must avoid a "start-stop" policy — supporting mining on one hand while declaring it illegal on the other creates uncertainty.
✅ The way forward: clear and cohesive legislation
The future of stablecoins depends on one thing: clarity.
The government needs to:
Develop a comprehensive regulatory framework,
Provide consumer protection,
And maintain a balance between innovation and regulation.
🔚 Conclusion
Stablecoins present immense opportunities and risks for Pakistan. If proper governance, secure infrastructure, and international cooperation are implemented, these silent experiments could transform into a major financial revolution — laying the foundation for a transparent, robust, and modern financial system.