Pakistan has entered into a memorandum of understanding (MoU) with SC Financial Technologies, an affiliate of World Liberty Financial, to explore integrating a USD-pegged stablecoin into the country’s payment infrastructure. This partnership aims to enhance Pakistan’s digital finance landscape by focusing on cross-border transactions and stablecoin adoption. The collaboration will bring the stablecoin into Pakistan’s existing cryptocurrency framework, which includes both regulatory advancements and digital asset initiatives.
This MoU is significant as it marks the first public agreement between a sovereign state and a cryptocurrency project. The deal follows Pakistan’s formation of the Pakistan Virtual Assets Regulatory Authority (PVARA) and the Pakistan Crypto Council. These steps highlight the nation’s increasing commitment to building a robust digital economy with enhanced regulation for virtual assets.
Stablecoin Integration for Cross-Border Transactions
Under the new agreement, World Liberty Financial will work alongside Pakistan’s central bank to incorporate a dollar-pegged stablecoin into the national payment system. The stablecoin will be utilized primarily for cross-border payments, with an emphasis on remittances and trade. This move aligns with Pakistan’s broader efforts to streamline financial transactions and reduce dependency on traditional banking methods for international transfers.
The stablecoin, which operates across multiple blockchains, including BNB Smart Chain, has experienced significant growth in circulation. It aims to simplify the process of international transactions, offering a stable alternative to volatile cryptocurrencies. The partnership with World Liberty Financial could provide Pakistan with more control over digital assets and facilitate smoother financial operations within the region.
Pakistan’s Efforts to Strengthen the Cryptocurrency Ecosystem
Pakistan’s collaboration with World Liberty Financial comes as the nation takes key steps toward strengthening its cryptocurrency ecosystem. In the past year, Pakistan has introduced initiatives such as the PVARA and the Pakistan Crypto Council to regulate digital assets and ensure their safe integration into the economy. Major exchanges, including Binance and HTX, now operate legally within Pakistan, reflecting the country’s progressive stance toward cryptocurrency.
Additionally, Pakistan has revealed plans to establish a Bitcoin reserve, a move that signals the government’s intent to fully embrace blockchain technology. With these efforts, Pakistan aims to position itself as a leader in the global digital finance arena. This new agreement with World Liberty Financial is another step toward modernizing the country’s financial infrastructure and expanding its digital finance initiatives.
The USD-pegged stablecoin has grown significantly, with a circulating supply exceeding $3.4 billion. The deal aligns with Pakistan’s broader strategy to explore the potential of blockchain and decentralized finance. As this collaboration moves forward, it could lead to deeper integration of stablecoin technology in Pakistan’s financial sector, driving innovation in digital finance.