Pakistan is evaluating its approach to cryptocurrency, aiming for a more modern financial system through the potential development of both a rupee-backed stablecoin and a central bank digital currency (CBDC). With estimates suggesting a $20–$30 billion investment in crypto assets and over $300 billion in trading volume, experts warn that the absence of a clear framework could cost the country up to $25 billion. Banking leaders advocate a cautious legalization approach, prioritizing consumer protection and cybersecurity before full adoption. They suggest a gradual path towards legalization, focusing on strict standards for consumer protection and cybersecurity. Zafar Masud, President of the Pakistan Banks Association (PBA), emphasized that if properly regulated, digital finance could unlock billions in economic opportunities for the country. Meanwhile, Faisal Mazhar, Deputy Director of Payments at the State Bank of Pakistan, confirmed a CBDC prototype is currently under development with support from the World Bank and IMF, aiming to launch it before wider crypto adoption to help facilitate remittances and strengthen oversight.