Pakistan signs MOU with World Liberty Financial to explore stablecoin cross-border payments
Pakistan’s Ministry of Finance signed a non-binding memorandum of understanding (MOU) with an affiliate of World Liberty Financial to “explore innovation in digital finance,” with a particular focus on using U.S. dollar‑pegged stablecoins for cross‑border payments. The MOU was signed by Finance Minister Muhammad Aurangzeb and World Liberty Financial CEO Zachary Witkoff, and the ceremony was attended by Prime Minister Muhammad Shehbaz Sharif and Army Chief Field Marshal Syed Asim Munir. The Pakistan Virtual Assets Regulatory Authority (PVARA) said the agreement signals growing global interest and will involve collaboration with the central bank to integrate a regulated stablecoin into Pakistan’s digital payments infrastructure. Pakistan set up PVARA in May and the Pakistan Crypto Council (PCC) in 2025 to boost digital asset adoption; Chainalysis ranks Pakistan third globally for crypto adoption. The country aims to promote tokenization and blockchain solutions at scale, inviting global VASPs to apply for licensing. The MOU could deepen ties between Pakistan’s fast‑growing digital asset market and U.S. projects linked to the incoming Trump administration era.
Bullish
The MOU signals potential regulatory acceptance and institutional engagement with stablecoins in a high-adoption market. For traders this is constructive: (1) stablecoin integration with the central bank reduces friction for fiat on/off ramps, likely increasing on‑chain liquidity and trading volumes in Pakistan; (2) formal ties with a U.S. project can attract international VASPs and capital, supporting market depth and access; (3) PVARA’s licensing push and tokenization agenda lower regulatory uncertainty relative to total bans, which is typically bullish for crypto markets. Short term, expect increased interest in stablecoins and regional exchange volumes; price impact on major risk assets (BTC, ETH) may be limited but positive via higher on‑ramping. Long term, successful implementation could materially increase transactional volume and fiat‑crypto corridors, supporting sustained demand and institutional participation. Risks: MOU is non‑binding, political sensitivity (ties to a Trump‑linked project) and implementation hurdles (regulatory approvals, AML/CFT compliance) could delay or dilute outcomes; adverse developments would temper the bullish case.