Pakistan’s government has signed an agreement with a firm connected to World Liberty Financial to explore using a U.S. dollar-linked stablecoin for cross-border payments, according to a Reuters report published Wednesday. The information was attributed by the news agency to an unnamed source described as being involved with the deal.
According to the source cited by Reuters, the agreement establishes an exploratory partnership. The objective is to assess the viability of using the company’s digital currency to facilitate international financial transactions for Pakistan. The Reuters report also identified World Liberty Financial as the primary crypto business associated with the family of U.S. President Donald Trump.
Stablecoins are a class of cryptocurrency designed to maintain a stable value by pegging their market price to an external reference, typically a fiat currency like the U.S. dollar. They are intended to provide the transactional benefits of digital currencies while minimizing the price volatility seen in other cryptocurrencies such as Bitcoin.
The exploration of this technology centers on cross-border payments, which are a significant component of Pakistan’s economy. The country is a major recipient of global remittances, which are funds sent home by expatriate workers. Traditional international payment systems often involve fees and can take several days to clear, and proponents of stablecoin technology claim it can offer a more efficient alternative.
This reported development occurs within a period of regulatory uncertainty regarding digital assets in Pakistan. The State Bank of Pakistan has previously expressed caution on the use of cryptocurrencies, and various government bodies have been tasked with studying the technology to formulate a national policy. To date, Pakistan has not established a formal legal or regulatory framework for the operation and use of digital currencies.
As of this report, officials from the Pakistani government have not publicly commented on or confirmed the agreement. Representatives for World Liberty Financial have also not issued a public statement regarding the matter. The details of the reported partnership are based on the account provided by the single source cited by Reuters.
