Bitcoin News Today: Pakistan Launches First Government-Backed Stablecoin to Fuel Digital Economy Growth

Pakistan to Launch First Government-Backed Stablecoin

Pakistan is set to launch its first government-backed stablecoin, marking a significant step in integrating digital assets into its national economy according to reports. The initiative was announced by Bilal Bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), at Binance Blockchain Week in Dubai. The stablecoin, which will be pegged to fiat currencies like the U.S. dollar, aims to stabilize digital transactions and collateralize government debt.

The move underscores Pakistan's ambition to position itself at the forefront of digital financial innovation. "Why should we be at the tail-end of it when we have the muscle and the adoption?" Bin Saqib emphasized, highlighting the country's growing crypto user base and potential for economic transformation. This initiative complements existing efforts, such as the Strategic Bitcoin Reserve and the allocation of 2,000 megawatts for Bitcoin mining and AI data centers according to PVARA.

PVARA, an autonomous federal body, will oversee the stablecoin project to ensure user protection, curb illicit financial activities, and enforce shariah-compliant innovation according to regulatory guidelines. The authority's multi-stakeholder board includes representatives from the State Bank of Pakistan, the Securities and Exchange Commission, and the Federal Board of Revenue according to PVARA. Regulatory sandboxes will allow for testing under Islamic principles, crucial in a country where 97% of the population adheres to shariah guidelines according to financial experts.

Strategic Economic and Technological Moves

Pakistan's stablecoin initiative is part of a broader digital asset strategy that includes Central Bank Digital Currencies (CBDCs) and the Strategic Bitcoin Reserve according to PVARA. The stablecoin is designed to reduce volatility risks compared to cryptocurrencies like Bitcoin, making it ideal for everyday transactions and cross-border remittances according to market analysis. With over 20 million crypto users in Pakistan, as reported by Chainalysis, the government sees digital assets as a tool to boost financial inclusion and economic growth.

The Strategic Bitcoin Reserve, announced earlier this year, complements the stablecoin by diversifying Pakistan's digital asset strategies according to PVARA. During a keynote at Bitcoin Vegas 2025, Bin Saqib outlined the nation's plans to accumulate Bitcoin to bolster its national reserves according to PVARA. This initiative aims to stabilize fiscal policies amid high inflation rates, which hover between 10-15% according to International Monetary Fund data.

Regulatory and Market Implications

PVARA plays a central role in regulating Pakistan's digital asset space, ensuring that innovations align with global standards and protect users from financial risks according to regulatory documents. The authority's mandate includes preventing illicit activities and unlocking opportunities in fintech and tokenized assets according to official statements. A structured licensing regime for virtual asset service providers (VASPs) is also in development to encourage institutional participation and user protection according to PVARA.

The government's digital strategy extends beyond financial regulation. A 2,000-megawatt electricity allocation in May 2025 supports Bitcoin mining and AI data centers, reflecting Pakistan's dual focus on blockchain and artificial intelligence according to industry reports. This infrastructure investment could power about 1.5 million households and supports crypto mining profitability while advancing AI in a workforce of over 70 million according to economic analysis. Additionally, AI applications are being deployed to enhance immigration enforcement and combat illegal migration using fake documents according to government plans.

Global and Domestic Reactions

Pakistan's digital asset initiatives have attracted international attention and high-profile participation. At Bitcoin Vegas 2025, attendees included U.S. Vice President JD Vance and members of the Trump family, who witnessed Bin Saqib's keynote on the Strategic Bitcoin Reserve according to PVARA. The Pakistan Crypto Council has highlighted the country's work on stablecoins, data frameworks, and banking the unbanked as potential global case studies according to industry analysis.

Domestically, Pakistan's efforts have been praised by financial experts for addressing key challenges like financial inclusion and remittance efficiency. The stablecoin initiative could help streamline over $30 billion in annual remittances and serve 100 million unbanked adults, according to World Bank figures. The government's regulatory framework, which includes a National Digital Asset Framework and VASP licensing regime, aims to balance innovation with consumer protection according to official documentation.

What This Means for Investors

For investors, Pakistan's stablecoin launch represents a significant opportunity in the global $150 billion stablecoin market, according to DefiLlama. The country's growing crypto adoption and strategic infrastructure investments could attract both local and international capital. PVARA's oversight and the development of shariah-compliant regulations may also appeal to investors seeking to align their portfolios with ethical and religious principles according to market analysts.

The integration of AI and blockchain in Pakistan's economy could enhance productivity and security across various sectors. For example, AI-based immigration enforcement in Islamabad will pre-screen travelers using facial recognition and document verification, reducing fraud by up to 50% according to government plans. These technological advancements, coupled with a supportive regulatory environment, position Pakistan as a leader in digital finance for emerging markets according to industry experts.