For years, Pakistan was one of the most hostile countries toward cryptocurrency. In 2018, the State Bank of Pakistan banned banks from dealing with crypto exchanges. Anyone caught using Bitcoin or Ethereum risked legal trouble. Fast forward to 2025, and Pakistan is now ranked 3rd or 4th in the world for crypto adoption - ahead of countries like Japan, Germany, and Canada. How did this happen?
From Ban to Breakthrough
The shift didn’t come from luck. It came from necessity. With inflation hitting 38% in 2023 and the Pakistani rupee losing over 60% of its value since 2019, people stopped trusting banks. Savings evaporated. Remittances from overseas workers - which make up nearly 7% of Pakistan’s GDP - became slower and more expensive. Traditional systems failed. Crypto didn’t. People turned to stablecoins like USDT and USDC. These digital tokens, pegged to the U.S. dollar, became a lifeline. A farmer in Sindh could receive money from his son working in Saudi Arabia in minutes, not days. No middlemen. No fees. No currency conversion nightmares. By 2025, an estimated 20 million Pakistanis - nearly 9% of the population - held crypto. That’s more than the entire population of Sweden.How Chainalysis Got It Right
The most trusted ranking comes from Chainalysis’ 2025 Global Adoption Index. They don’t just count how many people own crypto. They measure actual value received through centralized exchanges, peer-to-peer trades, and decentralized platforms. Pakistan jumped six spots in one year, landing at #3 globally - behind only India and the United States. Why? Because Pakistan isn’t just full of speculators gambling on Bitcoin. It’s full of people using crypto to survive. Chainalysis found that 78% of crypto activity in Pakistan is tied to stablecoins for daily transactions, savings, and remittances. That’s utility, not hype. And that’s why the adoption is lasting.Other Rankings? Why the Confusion
Some reports still list Pakistan at #9. That’s because not all rankings are created equal. One analysis from May 2025 ranked countries by ownership percentage alone - and found Nigeria and Indonesia ahead. But those numbers didn’t account for transaction volume or economic impact. In Nigeria, crypto is often used for speculation. In Pakistan, it’s used to buy groceries. Chainalysis adjusts for purchasing power. A $100 crypto transaction in Pakistan goes much further than the same $100 in the U.S. That’s why Pakistan’s real adoption is higher than what raw ownership numbers suggest. The country’s crypto economy is worth $20-25 billion - more than the entire GDP of some small European nations.
The New Rules: A Regulatory Revolution
In July 2025, Pakistan did something no one expected: it created the Pakistan Virtual Assets Regulatory Authority (PVARA). For the first time, crypto exchanges, wallet providers, and DeFi platforms could operate legally - if they followed KYC, AML, and reporting rules. They didn’t stop there. The Pakistan Crypto Council, led by CEO Bin Saqib, was formed to bring together regulators, exchanges, and users. They held public forums. They published compliance guidelines. They even worked with international firms to build local infrastructure. This wasn’t just policy. It was cultural change. People stopped seeing crypto as a shady side hustle. It became a public utility - like mobile money in Kenya, but faster and cheaper.Who’s Driving the Growth?
It’s not just tech-savvy youth in Lahore. It’s:- Women in rural Punjab running small shops, using USDT to pay suppliers without waiting for bank transfers.
- Students in Karachi buying textbooks through crypto-based marketplaces.
- Families in Quetta receiving monthly support from relatives in the UAE, bypassing Western Union fees that used to eat up 12% of each transfer.
The Foreign Hand: Partnerships and Politics
Not all of Pakistan’s crypto progress is homegrown. In August 2025, the Pakistan Crypto Council signed a deal with World Liberty Financial, a firm linked to the Trump family. The goal? To bring blockchain infrastructure to Pakistan - and to train 500,000 citizens in crypto literacy by 2027. The deal brought in funding, tech tools, and international credibility. But it also raised eyebrows. Critics pointed out that Zach Witkoff, the co-founder, had direct access to Pakistan’s army chief and prime minister. Was this about development - or influence? The truth is messy. External partnerships helped speed things up. But the demand was already there. Without millions of Pakistanis pushing for change, no foreign company could have forced this transition.
What’s Next?
Pakistan’s crypto future isn’t about becoming a Bitcoin hub. It’s about becoming a financial lifeline for its people. The government is now exploring a central bank digital currency (CBDC) that could integrate with existing crypto networks. Some exchanges are testing crypto-based microloans for farmers. Others are building local DeFi apps that pay interest in stablecoins. The biggest risk? Over-reliance on foreign partners. If World Liberty Financial pulls out, or if U.S. policy shifts again, Pakistan could lose momentum. But the foundation is now strong. The people know how to use crypto. The rules are clear. The infrastructure is growing.What This Means for the Rest of the World
Pakistan’s story isn’t unique. It’s a preview of what’s coming in other developing nations. When traditional finance fails, people turn to open, permissionless systems. Crypto isn’t about rebellion. It’s about resilience. Countries like Vietnam, Nigeria, and Argentina are watching. If Pakistan can turn crypto from a banned tool into a national asset, others can too. The lesson isn’t about regulation - it’s about listening to what people actually need.What You Can Learn From Pakistan
If you’re in a country with unstable banks, high fees, or slow remittances, Pakistan’s example shows you don’t need permission to use crypto. You need:- A smartphone
- A reliable peer-to-peer exchange (like Paxful or LocalBitcoins)
- A stablecoin wallet (Trust Wallet, MetaMask)
- And the willingness to try something new
Is cryptocurrency legal in Pakistan in 2026?
Yes. Since July 2025, cryptocurrency is fully legal in Pakistan under the new Pakistan Virtual Assets Regulatory Authority (PVARA). Exchanges, wallets, and trading platforms must be licensed, but individuals can buy, sell, and hold crypto without legal risk. The ban from 2018 was officially lifted after widespread public demand and economic pressure.
Why is Pakistan using stablecoins instead of Bitcoin?
Bitcoin’s price swings make it unreliable for daily use. Stablecoins like USDT and USDC are pegged to the U.S. dollar, so their value stays steady. That’s why 78% of crypto activity in Pakistan involves stablecoins - for paying bills, sending money, and saving. Bitcoin is held more as a long-term store of value, not for everyday spending.
How many people in Pakistan own crypto?
Approximately 20 million Pakistanis, or about 9% of the population, held cryptocurrency by early 2025. This is significantly higher than the global average of 6.9%. Many users are under 35, but adoption is growing rapidly among older generations, especially those who rely on remittances from abroad.
Did Pakistan’s military get involved in crypto?
Yes, but indirectly. In April 2025, officials from World Liberty Financial met with Pakistan’s army chief and prime minister to discuss blockchain infrastructure. These meetings helped fast-track regulatory approval. While the military isn’t running crypto exchanges, its support signaled to the public that crypto was now a national priority - not a threat.
Can I send crypto from Pakistan to the U.S.?
Yes, and it’s one of the most common uses. Many Pakistanis working overseas send money home using USDT via peer-to-peer platforms. Recipients convert it to local currency through licensed exchanges. This process takes under 10 minutes and costs less than 1%, compared to 5-12% through traditional remittance services like Western Union.
Is crypto adoption in Pakistan just a bubble?
No. Chainalysis and other experts say Pakistan’s adoption is utility-driven, not speculative. People aren’t buying crypto to get rich quick - they’re using it to survive inflation, pay bills, and support families. That kind of adoption doesn’t vanish when prices drop. It grows stronger.