Pakistan's acceleration of cryptocurrency regulation and adoption is raising expectations that it could emerge as a global cryptocurrency hub by 2030. Binance founder Changpeng Zhao (CZ) recently stated that if Pakistan maintains its current pace, it is highly likely to become a global leader within the next five years.
CZ made these remarks in a conversation with Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), praising Pakistan's rapid progress in establishing its regulatory foundation. Saqib is currently serving as a strategic advisor on Pakistan's cryptocurrency strategy.
Lowering regulatory barriers to attract global exchanges
Pakistani regulators are currently issuing "No Objection Certificates (NOCs)" to global exchanges, allowing them to establish operations in the country. This approval allows companies like Binance and HTX to begin the process of establishing legal entities and applying for licenses in Pakistan. While this is a preliminary step before full licensing, it is being seen as a signal that allows them to operate within regulatory frameworks.
Pakistan is also swiftly drafting a Virtual Assets Act and accelerating the formation of the Pakistan Crypto Council, a national cryptocurrency policy-making body. These structural initiatives are contributing to bolstering the Pakistani market's credibility among global investors.
Tokenization of government bonds and gold reserves to be promoted... Up to $2 billion in value.
Pakistan is also actively exploring the possibility of tokenizing government assets. During talks with Binance, the idea of converting government bonds, short-term bonds, and commodity reserves into blockchain-based tokens was discussed, with the projected value reportedly reaching up to $2 billion (approximately KRW 2.89 trillion). If realized, this would be one of the world's largest sovereign asset tokenization projects.
This is attracting attention as an innovative experiment that could help Pakistan, which is suffering from a severe foreign exchange shortage, alleviate financial pressures by attracting digital capital.
National stablecoins and CBDCs are also being prepared.
Pakistan has also formalized plans to launch a stablecoin backed by its own currency. This measure addresses the dual challenges of modernizing its payment system and supporting tokenized sovereign debt. The central bank is also piloting a central bank digital currency (CBDC). This strategy of simultaneously pursuing a government stablecoin and a central bank digital currency is being hailed as a "scale-scale experiment" by major market participants.
Pakistan also plans to utilize its surplus electricity to operate Bitcoin (BTC) mining and artificial intelligence (AI) data centers. Analysts are also suggesting that Pakistan, with its vast engineering workforce and affordable electricity, could emerge as a hub for cryptocurrency mining.
Cryptocurrency population reaches 20 million... Urgent need for infrastructure expansion
The number of cryptocurrency users in Pakistan is estimated at 15 to 20 million, a figure that is exceptionally high by global standards. To meet this demand, the government plans to strengthen its regulatory framework while expanding the scope of cryptocurrency use across various sectors, including mining, payments, and asset management.
However, most of the regulatory measures currently being pursued are being implemented in the form of executive orders, requiring future congressional approval to ensure legal stability. In particular, some argue that the "Virtual Asset-Related Ordinance" and its supplementary regulations have a limited validity period, necessitating swift legislation to secure investor confidence.
๐ Market Interpretation
Pakistan is lowering regulatory hurdles to attract global exchanges and is leaping forward as a cryptocurrency-centric nation through a national tokenization and stablecoin strategy. In the medium to long term, it has the potential to become a testing ground for digital asset-based financial innovation in emerging markets.
๐ก Strategy Points
1. Opening the market by issuing a "quasi-licensed" NOC to global exchanges.
2. Securing a foreign currency inflow channel by promoting the tokenization of national assets.
3. Attempting to digitally transform payment and debt markets through a parallel strategy of stablecoins and CBDCs.
4. The potential for building mining and AI centers utilizing surplus electricity is drawing attention.
๐ Glossary
- NOC (No Objection Certificate): A document that officially certifies that the regulatory agency has no objection to a specific business activity.
- Stablecoin: A digital token with a stable price pegged to a real asset or currency.
- CBDC (Central Bank Digital Currency): Digital legal tender issued by a central bank
- Tokenization: The process of converting real-world assets into digital tokens on a blockchain.
๐ก Want to know more? AI-prepared questions for you:
A. Binance founder Changpeng Zhao (CZ) said that Pakistan could become a global cryptocurrency hub by 2030 if it maintains its current pace of regulatory reform and adoption.
A. The Virtual Assets Regulatory Authority of Pakistan issues No Objection Certificates (NOCs) to global exchanges like Binance and HTX, paving the way for them to establish local entities and prepare for formal licensing.
A. This is a strategy to increase foreign currency inflow and strengthen financial liquidity by converting up to $2 billion worth of government bonds, raw materials, and other assets into blockchain-based tokens.
A. Pakistan is formalizing the launch of a national stablecoin, while its central bank is also conducting a CBDC pilot project. Both initiatives aim to strengthen the digital payments infrastructure.
A. Key regulations are still operating in the form of executive orders, and must be enacted through congressional approval to ensure stable market operation.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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