Exclusive: Pakistan to Collaborate with World Liberty Financial on Dollar-Linked Stablecoin, Source Reveals
In a significant development, Pakistan has entered into a partnership with World Liberty Financial, a company linked to the Trump family, to explore the use of a stablecoin for cross-border payments. This collaboration comes as a source close to the deal shared insights on Wednesday, shedding light on the potential impact of this partnership.
The agreement, signed with SC Financial Technologies, a subsidiary of World Liberty, marks one of the first public partnerships between the crypto-based finance platform and a sovereign nation. It coincides with a period of improving relations between Pakistan and the United States.
Under the agreement, World Liberty Financial will collaborate with Pakistan's central bank to integrate its USD1 stablecoin into the country's digital payment infrastructure. This integration will enable the stablecoin to operate alongside Pakistan's own digital currency, revolutionizing cross-border transactions.
The deal is expected to be announced later on Wednesday during a visit by Zach Witkoff, CEO of World Liberty, to Islamabad. Pakistan's finance ministry and central bank are yet to provide comments on the matter.
Stablecoins, digital tokens pegged to the dollar, have gained prominence in recent years. The Trump administration's supportive federal regulations have further fueled their growth. As countries worldwide explore the potential of stablecoins in payments and financial systems, this partnership between Pakistan and World Liberty Financial could be a significant step forward.
World Liberty Financial's involvement has already generated substantial income for the Trump Organization, including from foreign entities, as reported by Reuters in October. Additionally, MGX, an Abu Dhabi investment company, utilized the World Liberty stablecoin to acquire a $2 billion equity stake in Binance, the world's largest crypto exchange, in May.
Pakistan's interest in digital currency projects stems from its desire to reduce cash usage and enhance cross-border payments, particularly remittances, a vital source of foreign exchange. The country's central bank governor announced in July that a digital currency pilot was imminent and that legislation to regulate virtual assets was being finalized.
This partnership between Pakistan and World Liberty Financial is a notable development in the global adoption of stablecoins and digital currencies. As the world embraces innovative financial solutions, such collaborations will play a crucial role in shaping the future of international payments and economic growth.
