Pakistan, Nov. 17 -- 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.

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...