In a landmark move, the State Bank of Pakistan (SBP) has granted legal recognition to virtual assets and announced plans to launch a central bank–backed digital currency. SBP Deputy Governor Dr. Inayat Hussain confirmed that the rupee will be convertible into digital currency, allowing investors to purchase virtual assets. This decision overturns the central bank’s earlier stance declaring cryptocurrency illegal in Pakistan. The Ministry of Law and Justice has drafted the Virtual Assets Bill 2025, proposing the creation of a Virtual Asset Regulatory Authority to oversee licensing and regulation. With Pakistanis already investing nearly $21 billion in crypto, experts say the policy shift could boost digital finance, strengthen regulation, and expand opportunities in the country’s digital economy.