TLDR
- Pakistan partners with World Liberty Financial (WLF) to explore using its USD1 stablecoin for cross-border payments.
- The agreement involves WLF working with Pakistan’s central bank to integrate the stablecoin into the digital payment system.
- The deal highlights Pakistan’s growing interest in stablecoins and blockchain technology for financial innovation.
- Relations between Pakistan and the United States are strengthening, as seen through the stablecoin agreement.
- The partnership builds on WLFI’s prior agreement with the Pakistan Crypto Council to promote decentralized finance and stablecoin adoption.
Pakistan has signed an agreement with a firm linked to World Liberty Financial (WLF), the main crypto business of Donald Trump’s family. The deal explores using WLF’s USD1 stablecoin for cross-border payments. This marks one of the first public partnerships between a sovereign state and World Liberty, a crypto-based platform launched in September 2024.
Collaboration with Pakistan’s Central Bank
Under the agreement, Reuters report reveals that WLF will collaborate with Pakistan’s central bank to integrate its USD1 stablecoin into the country’s regulated digital payment structure. The stablecoin will operate alongside Pakistan’s existing digital currency infrastructure.
This partnership aims to improve cross-border payments and streamline financial transactions between Pakistan and other nations. The deal will also allow the token to be used in conjunction with Pakistan’s own digital currency systems.
WLF’s involvement represents a growing trend of stablecoins becoming central to global financial systems. Pakistan plans to announce the agreement during a visit by WLF CEO Zach Witkoff to Islamabad.
US-Pakistan Ties and Financial Innovation
The agreement comes at a time when relations between Pakistan and the United States are warming. Stablecoins, such as the USD1 token, have seen growth in value over the past few years. The United States, under the Trump administration, introduced favorable rules for the cryptocurrency sector, which may have contributed to this development.
Pakistan has been exploring digital currency projects in an effort to reduce cash usage and enhance its remittance systems. The central bank governor stated in July that Pakistan is preparing a digital currency pilot and finalizing legislation for the regulation of virtual assets. These efforts aim to facilitate more efficient cross-border payments, an important source of foreign exchange for Pakistan.
The recent development is a basis for what happened in April last year, as we had reported, WLFI signed a Letter of Intent with the Pakistan Crypto Council. This partnership aims to promote blockchain technology, decentralized finance, and stablecoin adoption in Pakistan. The WLFI team also met with high-ranking Pakistani officials. These included the Prime Minister and ministers of finance, defense, and information, highlighting the government-level interest in the partnership.
The post Pakistan Signs Deal with World Liberty Financial for Stablecoin Payments appeared first on Blockonomi.
Source: https://blockonomi.com/pakistan-signs-deal-with-world-liberty-financial-for-stablecoin-payments/
