Pakistan is exploring the development of a rupee-backed stablecoin as part of efforts to capitalize on its $25 billion cryptocurrency market and enhance financial inclusion. The government is collaborating with the IMF and World Bank to create a central bank digital currency (CBDC) prototype, while the newly established Virtual Asset Regulatory Authority will ensure compliance in the digital asset sector. At the Sustainable Development Policy Institute Conference, Zafar Masud, President of the Pakistan Banks Association, highlighted the risks of delayed regulation, which could result in financial losses. He also emphasized the potential of blockchain technology to support the country's burgeoning digital economy. Additionally, fintech startup ZAR is planning to introduce dollar-backed stablecoins to reach unbanked populations, supported by the Virtual Assets Ordinance of 2025, which provides regulatory oversight for virtual asset service providers.