ISLAMABAD — Pakistan is reportedly holding cryptocurrency assets valued between $20 billion and $30 billion, yet the country lacks any regulatory framework to govern them. This revelation came during the Sustainable Development Policy Institute’s (SDPI) annual conference, where experts highlighted the urgent need for clear policies to manage the rapidly expanding digital economy.
According to analysts, Pakistan’s crypto trading volume could potentially surge to $300 billion, a figure alarmingly close to the nation’s current GDP of about $400 billion. This comparison underscores the scale of Pakistan’s untapped crypto economy — one that operates entirely outside official oversight.
Despite the growing participation of Pakistanis in the crypto market, there are no legal mechanisms defining how citizens can buy, sell, or trade digital assets. Experts at the conference stressed that such an unregulated environment poses serious risks, including cybersecurity vulnerabilities, financial fraud, and capital flight.
Several speakers proposed that Pakistan take a cautious, phased approach toward legalization. They recommended introducing a Central Bank Digital Currency (CBDC) as a pilot initiative. A CBDC, being state-backed, could enhance remittance efficiency, improve financial transparency, and give the government better control over digital transactions.
Zafar Masud, President of the Pakistan Banks Association, said that effectively managing crypto assets could bring an economic gain of $20 to $25 billion. However, he warned that any move toward regulation must address public distrust and the possibility of misuse.
The State Bank of Pakistan (SBP) has reportedly been developing a digital currency prototype since 2022, with pilot testing expected in the near future. If successful, this could mark Pakistan’s first step into a regulated digital financial system, potentially transforming the country’s financial landscape.
