Cryptocurrency Adoption and its Economic Implications for Emerging Markets: A Case Study of Pakistan

In recent years, the adoption of cryptocurrency has emerged as a significant economic trend in many developing and emerging economies, including Pakistan. This research paper explores the adoption rate, policy response, and economic implications of cryptocurrency in Pakistan, an emerging market facing structural challenges in its financial sector. The study highlights how cryptocurrencies such as Bitcoin, Ethereum, and stablecoins are influencing financial inclusion, cross-border remittances, inflation hedging, and informal investment behavior in Pakistan. The paper also addresses the regulatory vacuum and the State Bank of Pakistan’s cautious stance on digital assets, while evaluating potential risks such as money laundering, volatility, and cybercrime. Through qualitative analysis and secondary data, this study aims to understand how Pakistan’s crypto adoption is shaping the future of its economy and financial systems.