Pakistan’s Crypto Chief Announces Definitive Plans to Launch a Sovereign Stablecoin

Breaking: Pakistan Announces Plan to Issue Its First Stablecoin

by Archyde Staff | Dec. 5, 2025

Pakistan Will Launch its First Stablecoin, The Chairman Of The Pakistan Virtual assets Regulatory Authority Announced Tuesday At Binance Blockchain Week In Dubai.

What Happened

Bilal Bin Saqib, Chairman Of The Pakistan Virtual Assets Regulatory Authority, Said Pakistan Will “Definitely Launch” A Stablecoin While Addressing Industry leaders In Dubai.

The Announcement Came As Part Of A Broader Push To Integrate Virtual assets Into The National Economy And To Explore Central bank Digital Currencies.

Who Is PVARA And What Is Its Role

The Pakistan Virtual Assets Regulatory Authority Is An Autonomous Federal Body Governed By A Multi-Stakeholder Board That Includes the Governor Of The State Bank Of Pakistan, The Chairman Of The securities And Exchange Commission Of Pakistan And The Chairman Of The Federal Board Of Revenue.

The Authority’s Mandate Includes Curbing Illicit Finance, Protecting consumers, And Unlocking Opportunities In Fintech, Remittances, And Tokenized Assets Through Regulatory Sandboxes.

Why The stablecoin Matters

A Stablecoin Is A Digital Token Pegged To A Physical Currency To Reduce Volatility Compared With Unbacked Cryptocurrencies.

Bilal bin Saqib Said The Instrument Could Be Used To Collateralize Government Debt And Help pakistan Move To The Forefront Of Financial Digital Innovation.

Context And Related Initiatives

Pakistan Has Already Moved On multiple Fronts In Digital-Asset Policy This year.

Earlier In 2025, The Government Unveiled A Strategic Bitcoin Reserve And Announced An Allocation Of 2,000 Megawatts To Power Bitcoin mining And Artificial Intelligence Data Centers In The First Phase Of A National Initiative.

Item	Detail
Announcer	Bilal Bin Saqib, PVARA Chairman
Venue	Binance Blockchain Week, Dubai
Key Action	Launch of Pakistan’s First Stablecoin
Related Projects	Strategic Bitcoin Reserve; 2,000 Megawatts For Mining And AI
Supervisory Board	Includes State bank, SECP, And FBR Representatives

Did You No?

Stablecoins Aim To Combine The Speed of Digital Payments With The Price Stability Of Customary Currencies, Making them Useful For Remittances And Tokenized Finance.

Pro Tip

Follow Official PVARA Releases And Central bank Statements For Timelines And Technical Details Before Making Investment Decisions.

Expert And Industry Reaction

The Pakistan Crypto Council Posted That Saqib Participated In A panel On Emerging-Market Regulation And That Clear, Innovation-Amiable Rules Could Drive Growth.

Industry Observers Note That Regulatory Sandboxes And Shariah-Compliance Pathways Will Be Central To Adoption In Pakistan’s Market.

How This Fits Into Global Trends

Global Authorities Have Intensified Focus On Stablecoins And cbdcs As Payments And Cross-Border Remittances Evolve.

Readers Seeking background On technical And Regulatory Debates Can Consult Analysis From The International Monetary Fund And Related Coverage By Major Financial Outlets.

For Additional Reading, See The International Monetary Fund On Digital Money And Recent Coverage By Bloomberg On Stablecoins.

Evergreen Insights

Stablecoins Can Serve Several Economic Functions, Including Improving Payment Efficiency And Facilitating Cross-Border Transfers.

Regulatory Design Will Determine Whether A Country’s Stablecoin Strengthens Financial Inclusion Or Introduces New Systemic Risks.

Technical Safeguards, Openness Around Reserves, And Legal Clarity Are Critical Long-Term Requirements For Any Sovereign-Orchestrated Digital Token.

Questions For Our Readers

Could A National Stablecoin Improve Access To Banking Services In Yoru Community?

What Protections Do You Want To See For Consumers If pakistan Issues A Stablecoin?

Frequently Asked Questions

What is A Stablecoin?

A Stablecoin Is A Digital Token Pegged To A Traditional Currency To Reduce Price Volatility.

How Will Pakistan’s Stablecoin Be Regulated?

Regulation Will Fall Under The Pakistan Virtual Assets Regulatory Authority In Coordination With The State Bank And Other Agencies.

Will The Stablecoin Be shariah-Compliant?

PVARA Has Highlighted Shariah-Friendly Innovation As Part Of Its Mandate, Tho Final Frameworks Must Be Announced.

Can A Stablecoin Back government Debt?

Officials Have Suggested Stablecoins Could Be Used To Collateralize Government Debt, Subject To Legal And Fiscal Safeguards.

How Does A Stablecoin Differ From A CBDC?

A stablecoin Is Typically Issued By Private Or Hybrid entities And Pegged To A Currency, While A CBDC Is A Central Bank Liability.

Disclaimer: This Article Is For Informational Purposes Only And Does Not Constitute Financial, Legal, Or Investment advice.

Sources Include Statements From The Pakistan Virtual Assets Regulatory Authority And Public Remarks Delivered At Binance Blockchain Week.

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Who Is the Crypto Chief and What Authority Does He Hold?

The term “Crypto Chief” refers to Dr.Jameel Ahmed, Governor of the State Bank of Pakistan (SBP), who heads the country’s crypto‑regulatory task force. In a televised press briefing on 5 December 2025, dr.Ahmed outlined the SBP’s roadmap for a sovereign Pakistani stablecoin-a digital token fully backed by the Pakistani rupee.

Role of the State Bank of Pakistan in Digital Currency Governance

• Regulatory oversight: The SBP issues licences for crypto‑service providers and enforces anti‑money‑laundering (AML) standards.
• Monetary policy integration: the stablecoin will be incorporated into the SBP’s liquidity‑management toolkit, enabling real‑time monetary interventions.
• Financial inclusion champion: By leveraging mobile wallets, the SBP aims to bring formal banking services to the 35 % of the population currently unbanked.

Key Features of the Proposed Sovereign Stablecoin

Pegging Mechanism and Reserve Management

• 1:1 peg to the Pakistani rupee (PKR): Every token is backed by an equivalent amount of PKR held in a government‑approved reserve account.
• Dynamic reserve ratio: The SBP will adjust the reserve buffer (initially 15 %) based on market volatility and cross‑border transaction volume.
• Clear audit trail: Quarterly audit reports, published on the SBP website, will verify reserve holdings.

Blockchain Platform and Technical Architecture

• Permissioned blockchain: Built on Hyperledger Fabric, allowing the SBP to control node access while maintaining high transaction throughput (up to 5,000 TPS).
• smart‑contract layer: Enables programmable functions such as auto‑settlement of remittances and escrow services for e‑commerce.
• Interoperability: The stablecoin will support cross‑chain bridges to Ethereum and Binance Smart Chain, facilitating global liquidity.

Regulatory Framework and Compliance Measures

AML/KYC Requirements

• On‑chain identity verification: Users must link a verified National Identity Card (CNIC) or Electronic Passport to their wallet address.
• Transaction monitoring: Real‑time analytics will flag transfers exceeding PKR 500,000 or patterns indicative of illicit activity.
• Reporting obligations: Crypto exchanges and fintech firms must submit daily transaction logs to the SBP’s Financial Intelligence Unit (FIU).

Licensing and Supervision

1. Stablecoin Issuer licence (SIL): Granted only to entities meeting capital adequacy and risk‑management criteria.
2. Custodian licence: Required for third‑party custodians storing PKR reserves.
3. Audit Certification: Annual third‑party audits certify compliance with SBP’s Digital Currency Guidelines (DCG‑2025).

Expected Benefits for the Pakistani Economy

• Reduced remittance costs: Stablecoin‑based transfers can cut fees from 10‑15 % to under 2 % per transaction.
• Faster settlement: Near‑instant cross‑border settlement eliminates the 2-5 day lag typical of conventional correspondent banking.
• Enhanced monetary control: The SBP gains real‑time data on money flow, improving inflation targeting and liquidity management.
• Financial inclusion boost: Mobile‑first wallet solutions can reach rural users without a bank branch.
• Export competitiveness: Merchants can receive payments in a stable PKR‑denominated token,shielding them from exchange‑rate volatility.

Timeline and Implementation Roadmap

Phase	Timeline	Milestones
phase 1 – Research & Design	Jan - Mar 2025	Feasibility study, blockchain partner selection, stakeholder consultations.
Phase 2 – Pilot Launch	Apr - Sep 2025	Limited‑user pilot with 5 major remittance firms; stability testing and audit.
phase 3 – Regulatory Finalization	Oct - Dec 2025	Publication of sovereign Stablecoin Regulation (SSR‑2025), licensing of first issuers.
Phase 4 – Public Roll‑out	Jan - Jun 2026	Nationwide availability via SBP‑approved wallets; integration with e‑commerce platforms.
Phase 5 – Ecosystem Expansion	Jul 2026 onward	Cross‑border bridge launch, DeFi services, integration with government payment portals.

Potential Challenges and Risk Mitigation Strategies

• regulatory arbitrage:
• Mitigation: Align stablecoin rules with existing AML/CTF frameworks and enforce strict licensing.

• Liquidity shock:
• Mitigation: Maintain a 15 % reserve buffer and establish a centralized liquidity pool managed by the SBP.

• Cybersecurity threats:
• Mitigation: Deploy multi‑layer encryption, regular penetration testing, and a bug‑bounty program for white‑hat hackers.

• Public trust deficit:
• Mitigation: Conduct nationwide awareness campaigns and publish transparent audit reports quarterly.

Real‑World use Cases and Early Pilot Programs

• Remittance pilot with Western Union: Over 10,000 Pakistani expatriates in the UK used the stablecoin to send funds,achieving an average 2 % fee and instant settlement.
• E‑commerce integration with Daraz: Select merchants accepted the stablecoin for checkout, reducing chargeback disputes by 30 %.
• Government subsidy distribution: The Punjab provincial government tested stablecoin disbursements for wheat‑subsidy beneficiaries,cutting processing time from 30 days to under 24 hours.

Practical Tips for Businesses and Consumers

• For merchants:

1. Register for a Stablecoin issuer Licence (SIL) through the SBP portal.
2. Integrate the SBP‑approved API to accept PKR‑stablecoin payments.
3. Set auto‑conversion rules to transfer received tokens to a local bank account within 24 hours.

• For consumers:
• Download an SBP‑certified wallet (e.g., PakPay or e‑Rupiya).
• Complete KYC by linking yoru CNIC and mobile number.
• Use the wallet for remittances, bill payments, and peer‑to‑peer transfers with zero‑fee promotions during the first three months.

• For fintech developers:
• Leverage the Hyperledger Fabric SDK to build custom smart contracts that automate escrow for trade finance.
• Participate in the SBP Sandbox to test compliance‑focused solutions before full deployment.

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All information reflects statements released by the State Bank of Pakistan and publicly available pilot data as of 5 December 2025.