How Pakistan Moved $300 Billion in Crypto Despite Banking Bans

Imagine a country where banks won’t let you send money overseas, inflation eats away at your salary every month, and the only way to save your earnings is through a phone app that lets you trade Bitcoin with strangers across the globe. That’s Pakistan in 2025. Despite a formal ban on cryptocurrency by the State Bank of Pakistan since 2018, the country now handles an estimated $300 billion in annual crypto trading volume - one of the highest in the world.

This isn’t a glitch. It’s a survival strategy.

Over 40 million Pakistanis now use crypto in some form. That’s more than the entire population of Australia. And it’s not just tech elites in Lahore or Karachi. Farmers, teachers, gig workers, and students are all using crypto to protect their money, pay for services abroad, and send remittances home. The reason? Traditional finance has failed them.

Why Crypto Took Off When Banks Said No

The State Bank of Pakistan banned banks from handling crypto transactions in 2018. The official reason? Protecting consumers from fraud and financial instability. But the real issue was control. Banks didn’t want people bypassing the rupee or moving money outside the system.

It backfired.

Instead of killing crypto, the ban forced it underground - and made it better. Without banks, people turned to peer-to-peer (P2P) platforms like Paxful, Binance P2P, and local apps like CryptoPak and BitPaisa. These platforms let users trade directly with each other using mobile wallets like Easypaisa and JazzCash. You don’t need a bank account. You just need a phone and a Pakistani ID.

Traders now use QR codes to send rupees to a seller’s JazzCash wallet. The seller releases Bitcoin or USDT once the payment clears. It’s fast, anonymous, and works even in areas with no ATMs.

The Real Numbers Behind $300 Billion

That $300 billion figure sounds wild. Is it real? Yes - but not in the way you think.

It doesn’t come from official exchanges. It comes from P2P trades, over-the-counter deals, and untracked wallets. CoinLaw reports 18.2 million verified users, but other estimates say 40 million hold crypto. The difference? Many people trade once a month and never register on an app. They just use WhatsApp groups or Telegram channels to find buyers.

Think of it like a black market economy - but digital and decentralized. Every trade adds up. A student in Faisalabad sends $500 in USDT to a cousin in Canada. A freelancer in Islamabad gets paid $1,200 in Bitcoin for designing a website. A family in Quetta converts $200 in rupees to Bitcoin to protect against inflation. Multiply that by millions of people, every day, and you get $300 billion a year.

It’s not speculation. It’s survival.

What People Are Buying - and Why

Not all crypto is equal in Pakistan.

Bitcoin is the go-to for long-term savings. People buy it when the rupee drops and hold it for months. It’s digital gold - stable, scarce, and global.

USDT (Tether) is the workhorse. It’s a stablecoin pegged to the U.S. dollar. When inflation hits 30% in a year, USDT becomes your paycheck. You earn in crypto, spend in crypto, and avoid the rupee entirely.

Ethereum is growing fast. Young developers use it for smart contracts, NFTs, and DeFi apps. Some even earn income by running nodes or participating in token staking.

Other coins? Most are ignored. The market is too risky. People stick to what works: Bitcoin and USDT.

How Energy and Policy Are Shifting

Here’s the twist: the government is quietly helping crypto - even while denying it.

In 2024, Pakistan allocated 2,000 megawatts of surplus electricity to Bitcoin mining operations. That’s enough to power a small country. Why? Because Pakistan has cheap energy and a chronic power surplus. Instead of wasting it, they’re letting miners use it.

There’s no official license for mining. But no one’s shutting it down either. It’s a silent agreement: if miners pay for the power, the state looks the other way.

Meanwhile, the State Bank is holding closed-door talks with global regulators. Rumors suggest a new virtual asset law is being drafted - one that could legalize crypto exchanges and tax trading. The goal? Bring this $300 billion economy out of the shadows and into the tax system.

Some analysts even predict a national Bitcoin reserve. Not to control it - but to benefit from it.

Who’s Winning - and Who’s Getting Left Behind

Crypto in Pakistan isn’t equal.

In cities like Karachi, Islamabad, and Lahore, teens are buying Bitcoin before they get their first job. IT freelancers earn in crypto and live in USD equivalents. Tech hubs are thriving.

But in rural Sindh, Balochistan, or Khyber Pakhtunkhwa? Many still can’t access the internet reliably. No smartphones. No mobile wallets. No crypto.

The divide isn’t just economic - it’s digital. Crypto is lifting millions, but only those with access.

Still, the momentum is clear. Every year, over 5 million new users join. In 2025 alone, Pakistan added more crypto users than the entire population of New Zealand.

What This Means for the World

Pakistan isn’t just using crypto - it’s rewriting the rules.

Most countries try to ban or control crypto. Pakistan didn’t. It adapted. It turned a financial crisis into an innovation engine.

Other developing nations are watching. Nigeria, Vietnam, and Indonesia are copying Pakistan’s P2P model. Tanzania saw its DeFi activity grow 6.8x in two years - but Pakistan’s scale is 10 times larger.

This isn’t about rebellion. It’s about necessity. When your currency loses value and your banks won’t help, you build your own system. Pakistan did.

The $300 billion isn’t a number on a chart. It’s millions of people choosing freedom over frustration. It’s parents feeding their kids because they saved in Bitcoin. It’s students paying for online courses because they got paid in USDT. It’s a nation refusing to be held back by outdated systems.

What Comes Next?

Will Pakistan legalize crypto? Probably. But not because it’s trendy. Because it’s too big to ignore.

Regulation will come - with licensing, taxes, and KYC rules. But the core behavior won’t change. People will still trade P2P. They’ll still use USDT to protect their money. They’ll still buy Bitcoin when the rupee drops.

The real question isn’t whether crypto will survive in Pakistan. It’s whether the rest of the world will finally understand that when people are desperate enough, they don’t wait for permission. They build their own future.