In a significant shift from years of hesitation and regulatory resistance, Pakistan has officially entered the global cryptocurrency arena. The formation of the Pakistan Crypto Council (PCC) in March 2025 marks a pivotal moment in the nation’s financial evolution. While the move may seem overdue, it aligns with broader international trends and opens new doors for economic modernization, foreign investment, and digital inclusion.
A Long-Awaited Regulatory Shift
For years, Pakistan maintained a cautious—and at times outright hostile—stance toward cryptocurrencies. In 2021, despite growing grassroots interest among tech-savvy youth and investors, the State Bank of Pakistan (SBP) declared digital assets illegal, citing concerns over financial stability and regulatory oversight. However, this prohibition did little to curb adoption.
A report by the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) revealed that Pakistani individuals collectively held an estimated $20 billion in cryptocurrency—a clear sign that demand was thriving underground. The ban only pushed activity into informal channels, highlighting the limitations of top-down financial control in the digital age.
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Now, under Prime Minister Shehbaz Sharif’s leadership, the government has reversed course. The newly formed Pakistan Crypto Council (PCC)—chaired by Finance Minister Muhammad Aurangzeb with Bilal Bin Saqib as CEO—is tasked with crafting a clear regulatory framework for digital currencies. This isn't just about legalizing crypto; it's about integrating it into the formal economy.
Global Trends Influencing Local Policy
Pakistan’s decision didn’t occur in isolation. Around the world, nations are re-evaluating their stance on digital assets—not just for innovation, but for geopolitical and economic strategy.
In the United States, former President Donald Trump championed cryptocurrency during his campaign, positioning it as a tool for financial freedom and technological leadership. His administration introduced the concept of a "Crypto Strategic Reserve", including Bitcoin and Ether, signaling a strategic move to keep the U.S. at the forefront of blockchain innovation.
Similarly, the European Union advanced its Markets in Crypto-Assets Regulation (MiCA), setting a benchmark for compliance and investor protection. Meanwhile, BRICS nations have explored alternatives to the U.S. dollar, including a potential gold-backed common currency, though experts remain skeptical about its feasibility due to lack of a central financial backer.
Pakistan’s timing coincides with these global shifts. While Dr. Abid Qaiyum Suleri of the Sustainable Development Policy Institute (SDPI) notes that Pakistan isn’t deliberately aligning with U.S. policy, the convergence creates opportunities for cooperation—especially given that the U.S. remains Pakistan’s largest export destination.
Why This Move Matters for Pakistan
1. Attracting Foreign Investment
By establishing clear regulations through the PCC, Pakistan sends a strong signal to global investors: the country is open for digital business. Cryptocurrency-friendly policies can attract capital from blockchain startups, venture funds, and tech entrepreneurs looking for emerging markets with high growth potential.
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2. Financial Inclusion for Millions
Over 100 million adults in Pakistan remain unbanked. Cryptocurrencies—accessible via mobile phones and decentralized platforms—offer a low-cost alternative to traditional banking. With over 15–20 million estimated crypto users, many already use digital wallets for remittances and peer-to-peer transactions.
Blockchain technology can empower rural populations, gig workers, and small businesses by providing access to credit, savings tools, and cross-border payments without relying on physical banks.
3. Remittances and Trade Modernization
Pakistan receives over $25 billion annually in remittances, primarily from overseas workers. Traditional channels are slow and expensive, with fees eating into hard-earned income. Cryptocurrency can streamline these transfers, reducing costs and settlement times from days to minutes.
Moreover, adopting blockchain for trade finance could reduce fraud, improve transparency, and integrate Pakistan into global supply chains more efficiently.
4. Youth and Tech Talent as a Competitive Edge
With over 60% of its population under 30, Pakistan boasts one of the youngest workforces in Asia. This demographic is not only early adopters of digital trends but also capable of driving innovation.
Sajjad Mustafa Syed, President of the Pakistan Software Houses Association (P@SHA), emphasizes that the country can become a backend hub for global crypto systems—offering development, auditing, and smart contract services to international firms.
Challenges Ahead
Despite the promise, risks remain:
- Volatility: Cryptocurrencies like Bitcoin are known for price swings, which can destabilize portfolios and undermine public trust.
- Regulatory Gaps: Without strong anti-money laundering (AML) and know-your-customer (KYC) frameworks, digital assets could be exploited for illicit activities.
- Infrastructure Limitations: Uneven internet access and low digital literacy in rural areas may slow widespread adoption.
Experts suggest that alongside private cryptocurrencies, Pakistan should explore launching its own Central Bank Digital Currency (CBDC)—a government-backed digital rupee that combines innovation with stability.
FAQ: Your Questions Answered
Q: Is cryptocurrency now legal in Pakistan?
A: Yes. The formation of the Pakistan Crypto Council in 2025 marks the beginning of formal recognition and regulation of digital assets in the country.
Q: How many people in Pakistan use cryptocurrency?
A: Estimates suggest between 15 to 20 million users, making Pakistan one of the fastest-growing crypto markets in South Asia.
Q: Will Pakistan adopt Bitcoin as official currency?
A: No immediate plans exist to make Bitcoin legal tender. Instead, the focus is on regulation, innovation, and potentially developing a central bank digital currency (CBDC).
Q: Can foreigners invest in crypto in Pakistan?
A: With clearer regulations on the horizon, foreign investors interested in blockchain and digital assets are expected to find new opportunities in Pakistan’s evolving market.
Q: How does crypto help reduce reliance on the U.S. dollar?
A: By enabling direct cross-border transactions without intermediaries, crypto can reduce the need for large dollar reserves in trade and remittances.
Q: What is the role of the Pakistan Crypto Council (PCC)?
A: The PCC is responsible for creating regulatory guidelines, promoting blockchain innovation, enhancing financial inclusion, and positioning Pakistan in the global digital economy.
The Road Forward
Pakistan’s entry into the crypto space may be late—but it comes at a time when global momentum is building. By learning from international models like MiCA and U.S. regulatory reforms, Pakistan can avoid early missteps and build a resilient digital financial ecosystem.
The real opportunity lies not just in adopting cryptocurrency, but in leveraging blockchain technology to solve structural economic challenges—from remittance inefficiencies to financial exclusion.
As Mustafa Hyder Sayed, a geoeconomist, observes: “State-level crypto adoption is still new. Pakistan may be late, but it’s joining a movement that could redefine global finance.”
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With strategic vision, robust regulation, and investment in digital infrastructure, Pakistan can turn its "late move" into a long-term advantage—one transaction at a time.
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