ISLAMABAD: The launch of Zar, a new stablecoin venture by Sadapay, backed by $12.9 million in seed funding, has reignited debates on balancing commercial innovation with national financial safeguards in Pakistan. The venture, funded by leading global investors including Andreessen Horowitz, Coinbase Ventures, and VanEck, aims to broaden access to capital inflows, particularly remittances.
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While investors praise Zar’s potential, experts caution about risks to the national currency and financial stability. Muhammad Faran of KTrade highlights that widespread stablecoin adoption could shift liquidity away from regulated banking, impact net interest margins, and reduce local currency demand. Similarly, Aatiqa Lateef, a former policy director at Rain, advocates for regulation rather than prohibition, emphasizing transparency, onshore settlement in rupees, and phased caps for wallets to manage exposure.
Officials from Zar note that the platform primarily focuses on savings rather than local payments, though US-issued Zar cards could technically be used domestically. Experts suggest that digital rupee adoption alongside regulated stablecoin systems could mitigate dollarisation risks while fostering financial inclusion and innovation.
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The discussion underscores a broader policy question: how to balance commercial freedom with measurable public-interest outcomes. Analysts recommend licensing, reserve reporting, segregation of client assets, and daily supervision by the State Bank of Pakistan to ensure stability. Allowing banks to issue tokenized deposits on-chain while limiting non-bank stablecoin issuers could preserve competition without compromising macroeconomic control.