Pakistan’s evolving approach to blockchain and cryptocurrency in 2025—highlighted by high adoption, the launch of a Strategic Bitcoin Reserve, and efforts to develop a regulatory framework—reflects a cautious yet ambitious bid to harness digital finance for economic growth, despite legal ambiguities and infrastructure gaps that must be addressed for sustainable progress.- Pakistan ranks third globally in crypto adoption with 20 million users, yet faces legal uncertainty due to the continued ban by the State Bank of Pakistan.
- Pakistan announced a sovereign Bitcoin reserve in 2025, signaling a major policy shift and intent to lead in digital finance.
- The Pakistan Crypto Council is drafting regulations and exploring a dedicated regulatory authority (PVARA), but mixed government signals persist.
- Legal ambiguity, weak infrastructure, lack of awareness, and IMF concerns pose serious hurdles to sustainable crypto integration in Pakistan.
As of June 2025, blockchain and cryptocurrency are reshaping global finance, and Pakistan is cautiously stepping into this transformative space. With a growing interest in digital assets, evidenced by its third-place ranking in the Global Crypto Adoption Index with 20 million active crypto users (Geo.tv), Pakistan is balancing innovation with regulatory caution. This article explores global blockchain and crypto trends, clarifies the State Bank of Pakistan’s (SBP) policy, examines the Strategic Bitcoin Reserve initiative, and identifies gaps hindering the smooth conduct of crypto in Pakistan.
Global Blockchain and Crypto Trends in 2025
The blockchain and crypto ecosystem is evolving rapidly, with several key trends shaping its trajectory in 2025:
- Cross-border Transactions: Blockchain is reducing friction in cross-border payments, with central bank digital currencies (CBDCs) gaining traction. Over 100 countries are researching CBDCs, which could transform digital payments (TechTarget).
- Institutional Adoption: The introduction of crypto ETFs and a crypto-friendly regulatory environment, particularly in the U.S., is driving institutional investment. In February 2025, blockchain startups received $485 million in venture capital funding, focusing on real-world applications (Exploding Topics).
- AI Integration: AI-powered solutions, such as autonomous agents, are enhancing blockchain efficiency, gaining significant market traction (ChangeHero).
- Bitcoin Mining: Bitcoin mining firms like Marathon Digital and CleanSpark have seen stock value surges, with some outperforming Bitcoin itself (Exploding Topics).
- Regulatory Clarity: Global efforts, such as the U.S. Executive Order on digital fintech, aim to provide regulatory certainty while opposing CBDCs (Mintz).
- Crypto Crime: Despite a drop in illicit crypto inflows to $40.9 billion in 2024, the sector remains vulnerable to scams and fraud, necessitating robust security measures (Chainalysis).
These trends highlight the growing maturity of blockchain and crypto, setting the stage for Pakistan’s engagement with this technology.
State Bank of Pakistan’s Policy on Cryptocurrency
The State Bank of Pakistan (SBP) has maintained a cautious stance on cryptocurrencies. Since its 2018 circular, the SBP has banned financial institutions from handling virtual assets, citing risks like money laundering and lack of legal recourse (CCN). As of June 2025, Finance Secretary Imdadullah Bosal confirmed that this ban remains in place, with no legal framework for crypto yet (DAWN).
However, recent developments suggest a potential shift:
- Proposed Amendments: The government has proposed amendments to the SBP Act to legalize digital currencies, indicating a move toward formalizing the crypto sector (The Express Tribune).
- Pakistan Crypto Council (PCC): Established in March 2025, the PCC, chaired by Finance Minister Muhammad Aurangzeb and led by CEO Bilal Bin Saqib, is drafting a regulatory framework to govern digital assets, ensuring investor protection and compliance with global standards (Profit by Pakistan Today).
- Mixed Signals: Despite these efforts, the SBP and Ministry of Finance maintain that crypto transactions are illegal, creating confusion. Lawmakers have questioned the government’s promotion of crypto mining zones and digital assets while the ban persists (Daily Times).
This policy ambiguity underscores the need for a cohesive regulatory approach to align with Pakistan’s crypto ambitions.
Pakistan’s Strategic Bitcoin Reserve
In a landmark announcement at the Bitcoin 2025 conference in Las Vegas on May 28, 2025, Pakistan unveiled plans for a government-led Strategic Bitcoin Reserve (Blockhead). Led by Bilal Bin Saqib, Special Assistant to the Prime Minister on Blockchain and Crypto, this initiative marks a dramatic shift from Pakistan’s previous anti-crypto stance. The reserve will hold digital assets as a sovereign reserve, signaling long-term confidence in decentralized finance. Inspired by U.S. policies under President Trump, this move aligns with Pakistan’s high crypto adoption rate and aims to position the country as a leader in digital finance (Photonews).
The PCC is also exploring the creation of the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee the crypto ecosystem, further emphasizing the government’s commitment to blockchain technology (Profit by Pakistan Today).
International Monetary Fund, Crypto and Pakistan
The International Monetary Fund (IMF) has expressed concerns over Pakistan’s unilateral decision to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers without prior consultation. This initiative, spearheaded by the Pakistan Crypto Council (PCC), aims to utilize surplus energy, foster high-tech employment, and attract foreign investment as part of a broader digital transformation strategy. However, the IMF questioned the legality of such a move, given the ambiguous status of cryptocurrency in Pakistan, and emphasized that all significant decisions should align with the IMF program through mutual agreement. The IMF’s scrutiny coincides with Pakistan’s efforts to legalize cryptocurrency trading to boost international investment and its ambitious plan to train one million AI professionals by 2027. These developments underscore the IMF’s insistence on transparency and adherence to agreed frameworks in Pakistan’s digital and economic reforms (Express Tribune).
Gaps in the Smooth Conduct of Crypto in Pakistan
Despite these progressive steps, several challenges hinder the smooth adoption of crypto in Pakistan:
| Gap | Description | Impact |
| Legal Uncertainty | The ongoing ban creates ambiguity for investors and businesses. | Deters investment and innovation in the crypto sector. |
| Regulatory Framework | Lack of clear regulations limits legal operations. | Hinders the growth of crypto businesses and investor confidence. |
| Infrastructure | Underdeveloped trading platforms, wallets, and mining facilities. | Limits accessibility and scalability of crypto activities. |
| Education and Awareness | Limited public understanding of crypto risks and benefits. | Increases vulnerability to fraud and misinformation. |
| Integration | Poor integration with traditional banking systems. | Restricts seamless crypto transactions and mainstream adoption. |
| Security | High risk of fraud and cyber threats in an unregulated environment. | Undermines trust in the crypto ecosystem. |
| Taxation and Compliance | Absence of clear tax guidelines for crypto transactions. | Complicates government oversight and revenue collection. |
Addressing these gaps requires coordinated efforts from the government, SBP, and private sector to create a robust and secure crypto ecosystem.
Pros and Cons of Cryptocurrency for Pakistan
Below is a concise list of five pros and five cons of cryptocurrency specifically for Pakistan and its nation:
Pros of Cryptocurrency for Pakistan
- Economic Growth and Tax Revenue: Regulating cryptocurrencies can generate significant tax revenue for Pakistan, potentially billions of rupees annually, which is crucial for a cash-strapped economy.
- Financial Inclusion: Cryptocurrencies can provide banking services to the unbanked population, promoting financial inclusion and reducing poverty in a country where traditional banking access is limited.
- Remittances: Crypto can facilitate cheaper and faster remittances, which are vital for Pakistan’s economy, as many Pakistanis work abroad and send money home.
- Technological Leadership: Embracing crypto can position Pakistan as a leader in blockchain technology, fostering innovation and attracting tech investments, which can drive economic diversification.
- Hedge Against Inflation: Cryptocurrencies like Bitcoin can serve as a hedge against inflation, which has been a persistent issue in Pakistan, offering a stable store of value for citizens.
Cons of Cryptocurrency for Pakistan
- Regulatory Challenges: The lack of clear regulations creates legal uncertainties, potential misuse, and difficulties in oversight, which can hinder the smooth operation of crypto activities.
- Volatility: The high volatility of cryptocurrencies can lead to significant financial losses for investors, especially in a country with limited financial literacy and awareness.
- Security Risks: Increased crypto adoption can lead to higher risks of cybercrimes, fraud, and hacking, which can undermine trust in the system and deter potential users.
- Energy Consumption: Crypto mining requires substantial energy, which can strain Pakistan’s already challenged power infrastructure, potentially leading to energy shortages.
- Speculative Nature: The speculative nature of cryptocurrencies can lead to market bubbles and crashes, potentially destabilizing the economy and affecting investor confidence.
Conclusion
Pakistan’s journey into blockchain and cryptocurrency in 2025 reflects a delicate balance between innovation and regulation. Global trends, such as institutional adoption and AI integration, provide a backdrop for Pakistan’s efforts to formalize its crypto sector. The Strategic Bitcoin Reserve and the Pakistan Crypto Council are bold steps toward embracing digital finance, but the ongoing ban and policy ambiguity create challenges. By addressing gaps in legal clarity, infrastructure, and public awareness, Pakistan can leverage its high crypto adoption rate to become a regional leader in blockchain technology, driving economic growth and innovation but also managing optimally the pros and cons.
* Dr. Muhammad Jahanzaib is the Founder & Chief Visionary Officer (CVO) of Diamanium Thinkers, a global think tank. He holds a PhD in International Relations, specializing in the intersection of politics and economics in Pakistan’s foreign and domestic policy. A double gold medalist and published scholar, he writes on economic intelligence, economic diplomacy, political economy, AI, and regional cooperation in South Asia and beyond. He can be reached at jahanzaibdgc@gmail.com
Key Citations
- 12 must-know blockchain trends for 2025 and beyond
- Top 7 Cryptocurrency Trends (2025 and Beyond)
- Blockchain and Crypto trends 2025: Further integration with traditional finance
- Blockchain and Digital Assets News and Trends – February 2025
- 18 Blockchain Development Trends You Cannot Miss Out on 2025
- Crypto, DeFi, and Blockchain in 2025: Experts Share Key Trends and Challenges
- 2025 Crypto Crime Trends from Chainalysis
- Emerging Blockchain Development Trends for 2025 and Beyond
- All Blockchain Events in June 2025
- A New Era for Crypto Regulation & Innovation?
- Finance secretary says ban on cryptocurrency still in place
- Govt proposes changes to SBP Act
- Govt considers formal digital asset rules as crypto remains banned
- Pakistan’s Crypto Clarification & Bitcoin Reserve Plan
- Crypto policy in disarray as SBP, ministry insist ban is still in place
- Pakistan Announces Plans for National Bitcoin Strategic Reserve
- Pakistan’s Crypto U-Turn Signals New Era for Digital Finance
- Digital currency remains banned in Pakistan despite govt’s crypto push
- Govt constitutes Pakistan Crypto Council to accelerate digital transformation
- IMF seeks explanation on Bitcoin AI Initiatives