Crypto ownership in Pakistan has reached striking levels, with citizens reportedly holding between $20 billion and $25 billion worth of digital currencies. This was highlighted in a new Asian Development Bank (ADB) report that places Pakistan 8th in global cryptocurrency adoption, despite regulatory hurdles.
According to the ADB, crypto ownership in Pakistan is largely driven by inflation and the rapid depreciation of the local currency, which has plummeted by 165% between 2017 and 2024. Faced with economic uncertainty, many Pakistanis see cryptocurrencies as a hedge to protect their savings from losing value.
Supporting this trend, data from Chainalysis ranks Pakistan 8th worldwide in crypto adoption, surpassing many regional peers. This level of crypto ownership in Pakistan highlights the public’s appetite for digital assets as a store of value amidst a challenging economic climate.
However, these substantial holdings have raised concerns among policymakers. Authorities worry that such volumes could trigger significant foreign exchange outflows, further pressuring Pakistan’s reserves. In response, the government imposed a complete ban on owning, trading, or transacting cryptocurrencies in April 2023.
Looking ahead, there may be changes to the digital financial landscape. The State Bank of Pakistan announced that it is working on launching a Central Bank Digital Currency (CBDC). While details remain uncertain, it is yet to be clarified whether this digital currency will initially be rolled out for retail use or limited to interbank and treasury operations.
For now, despite regulatory hurdles, crypto ownership in Pakistan continues to reflect a population seeking alternatives to safeguard their wealth against economic volatility.
