Pakistan is increasingly viewing Bitcoin and blockchain technology as critical components of a new financial infrastructure for its 240 million citizens, signaling a potential shift towards formal regulation of crypto markets. This perspective was highlighted by Bilal Bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), at the Bitcoin MENA Conference. He framed Bitcoin not as a speculative asset, but as a practical solution to structural economic problems facing millions of Pakistanis.
Bin Saqib outlined his mandate to transform one of the world’s largest unregulated crypto markets into a compliant, investment-friendly ecosystem. Pakistan has already begun establishing a virtual asset regulatory framework, issuing provisional licenses for exchanges, and developing regulatory sandboxes for mining, tokenization, and fintech.
Several factors are driving this shift. The Pakistani rupee has lost over half its value in the past five years, eroding the purchasing power of ordinary citizens. Bitcoin is viewed as a way to store value outside of inflation driven by political decisions and currency mismanagement. Furthermore, over 100 million Pakistanis remain unbanked, and Bitcoin offers a financial identity without the need for traditional intermediaries. This permissionless access is particularly beneficial for young people encountering financial ownership for the first time.
Cross-border payments are another key consideration. Pakistan has a large freelance workforce that often faces challenges receiving international payments quickly and cheaply. Bitcoin and blockchain-based payment systems can enable Pakistani workers to get paid globally without friction or excessive fees.
Pakistan is also planning to launch a stablecoin, in addition to the State Bank of Pakistan’s (SBP) Central Bank Digital Currency Pilot. The government is committed to creating a transparent and secure regulatory framework for digital assets to promote innovation while safeguarding investors' interests.
The government has also demonstrated its commitment to crypto regulation through meetings with Binance leadership, including CEO Richard Teng. Prime Minister Shehbaz Sharif and Chief of Defence Forces, Field Marshal Asim Munir, were also present at a meeting where PVARA Chairman Bilal Bin Saqib outlined the authority’s recent progress and ongoing initiatives.
Pakistan ranks third globally in crypto adoption, ahead of major economies like China, Germany, and Japan. It also stands second in retail-size crypto transactions and third in activity on centralized exchanges. To capitalize on this momentum, Pakistan aims to establish a structured regulatory environment that protects investors without stifling innovation.
In May 2025, the government allocated 2,000 megawatts of electricity for a national program supporting Bitcoin mining and AI data centers. At Bitcoin Vegas, Pakistan unveiled its first government-led Strategic Bitcoin Reserve. This national Bitcoin wallet is intended for holding Bitcoin and not for speculation.
Hassan Baig, Chairman of Stacks Asia Foundation, stated that they are exploring partnerships in Pakistan to build end-to-end crypto rails and provide liquidity kept onshore in Pakistani banks. Stacks Asia Foundation is also on the cusp of testing Pakistan's first cross-border payment over crypto rails with a large financial institution. This demonstration aims to prove that remittance can be received in less than 50 seconds at a cost of less than 0.5%.
