Pakistan Embraces World Liberty Stablecoin in Landmark Deal

Pakistan has partnered with a firm linked to World Liberty Financial to utilize its stablecoin for cross-border payments. This marks a notable collaboration between a sovereign state and World Liberty, signaling warming ties between the U.S. and Pakistan. The agreement involves integrating the USD1 stablecoin with Pakistan's digital currency framework.

Pakistan is making headlines with its latest partnership involving World Liberty Financial, a crypto entity associated with the family of U.S. President Donald Trump, to explore the use of stablecoins in cross-border transactions. The collaboration signifies one of the earliest public engagements between World Liberty and a national government, pointing to improving relations between Pakistan and the United States.

The agreement outlines how World Liberty's USD1 stablecoin will be incorporated into Pakistan's regulated digital payments structure, operating in tandem with the country's existing digital currency ecosystem. Details on the agreement, made in conjunction with SC Financial Technologies, remain scarce but are expected to be disclosed following an official announcement during World Liberty CEO Zach Witkoff's visit to Islamabad.

The deal comes against a backdrop where stablecoins, pegged typically to the dollar, have increased in prominence. With the U.S. having adopted favorable federal rules for the crypto sector under Trump's administration, nations worldwide are evaluating the place of stablecoins within their financial systems. Pakistan, keen to curb cash usage and boost cross-border remittances, is advancing its digital currency projects to strengthen its financial framework.

(With inputs from agencies.)