Pakistan plans to introduce USD stablecoins and collaborate with World Liberty to explore new cross-border payment models

On January 14, news reports indicate that Pakistan has reached a cooperation agreement with an institution affiliated with World Liberty Financial, planning to explore the launch of a USD-pegged stablecoin and apply it to cross-border payments and compliant digital payment systems. This development is seen as an important case of sovereign participation in stablecoin applications and marks a significant step forward for Pakistan in the digital financial sector.

Overall, the agreement involves World Liberty’s USD stablecoin (pegged at a face value of 1 USD), which is planned to operate under the regulatory framework of the State Bank of Pakistan. Sources say that World Liberty will collaborate technically with the Pakistan central bank to integrate the stablecoin into the local regulated digital payment infrastructure, enabling it to work in tandem with the existing financial system and future central bank digital currency (CBDC) architecture, with a focus on cross-border settlement and remittance scenarios.

From a background perspective, this is the first public disclosure of cooperation at the sovereign level since World Liberty launched its crypto financial platform in September 2024. Meanwhile, the policy and economic interactions between Pakistan and the United States continue to intensify, providing a practical foundation for such fintech collaborations. Insiders add that the relevant agreement may be officially announced during World Liberty CEO Zach Witkoff’s visit to Islamabad.

In summary, stablecoins, as digital assets pegged to the US dollar, have strengthened their role in global payments, settlement, and financial infrastructure in recent years. During Trump’s administration, the U.S. federal level introduced a series of relatively friendly crypto policies, which also prompted more countries to reassess the potential value of stablecoins within compliant financial systems.

For Pakistan, developing digital currencies and stablecoin applications holds practical significance. The country has long relied on overseas remittances as a major source of foreign exchange, and reducing cross-border payment costs and improving settlement efficiency have always been policy priorities. Previously, the Pakistan central bank explicitly stated that it is preparing a pilot project for digital currency and simultaneously advancing legislation for virtual asset regulation.

If the USD stablecoin project proceeds smoothly, Pakistan could become one of the early emerging market countries to achieve compliant stablecoin application by 2026, providing a new case study for the integration of stablecoins into sovereign financial systems.