Pakistan Advances CBDC Prototype and Rupee-Backed Stablecoin
Pakistan’s State Bank, backed by the World Bank and IMF, is advancing a rupee-backed stablecoin and a central bank digital currency (CBDC) prototype. The CBDC has reached an advanced development stage, with pilot trials planned before full rollout. Endorsed by the Pakistan Banks’ Association, the initiative aims to modernize financial infrastructure, improve transaction efficiency, and boost the economy by up to $25bn. Goals include enhancing financial inclusion, reducing reliance on cash, cutting transaction costs, and strengthening monetary policy. Market participants emphasize that clear regulatory frameworks and upgraded payment systems are vital for the CBDC and stablecoin’s launch and adoption.
Neutral
The news focuses on the development of a rupee-backed stablecoin and a CBDC prototype, both designed as regulated digital assets pegged to the fiat rupee. In the short term, this initiative is unlikely to trigger price volatility since the assets are stable by design and aimed at infrastructure improvement rather than speculative trading. In the long term, clearer regulations, pilot trials, and improved payment systems could foster wider digital currency adoption and strengthen market infrastructure. This gradual rollout supports market stability and may encourage institutional engagement, making the overall impact neutral with potential positive effects on market confidence.