Key Takeaways
- Pakistan has signed a Letter of Intent with Trump’s World Liberty Financial to help introduce a new crypto era in the country.
- The country’s leadership is interested in developing a new era of investment and development in crypto and digital finance.
- Cryptocurrencies were banned in the country, but the central bank is now supporting their introduction.
US President Donald Trump-backed decentralized finance (DeFi) platform World Liberty Financial (WLF) has signed a Letter of Intent (LOI) with the Pakistan Crypto Council to facilitate blockchain innovation, decentralized finance integration, and stablecoin adoption across the country.
According to an announcement by Pakistan’s Ministry of Finance after a meeting with the World Liberty Financial delegation, the country’s Deputy Prime Minister Ishaq Dar said the government was interested in promoting cryptocurrencies. The WLF delegation, which included Zachary Folkman, Zachary Witkoff (son of Steve Witkoff, who’s the United States Special Envoy to the Middle East), and Chase Herro, also held separate meetings with the Chief of Army Staff General Asmin Munir and Prime Minister Shehbaz, Sharif. A statement from the Ministry of Finance said:
“World Liberty Financial, the decentralized finance (DeFi) platform backed by the US President Donald Trump, has signed a landmark Letter of Intent (LoI) with the Pakistan Crypto Council (PCC) to accelerate blockchain innovation, stablecoin adoption, and decentralized finance (DeFi) integration across Pakistan.”
A New Era of Development and Investment in Crypto
The details of the meetings and the signing of the Letter of Intent were made public a day after US President Donald Trump spoke about a recent wave of hostilities between Pakistan and neighboring India. Trump stated:
“I am very close to India, and I’m very close to Pakistan […] they’ll get it figured out one way or the other. I’m sure I know both leaders.”
Regarding the development, Pakistan’s federal minister for information and broadcasting, Attaulah Tarar, said the country was entering a new era of development and investment in the crypto and digital finance sectors. While speaking after the signing ceremony of the agreement with World Liberty Financial, Tarar said:
“Given the rich potential of the youth, the emerging economy, and the growing confidence of global financial institutions, Pakistan is rapidly gaining a prominent position in the crypto industry […] Pakistani youth have immense potential which can be utilized to create new employment opportunities; ways are being found to digitize remittances so that both the government and the people can directly benefit.”
With at least 60% of the Pakistani population comprising youth under the age of 30, Tarar believes the new initiative will incentivize this demographic to create new jobs. The minister acknowledged the crypto sector’s rapid progress and expressed optimism that the partnership would be a gateway to the country’s crypto opportunities.
Government Taking a Proactive Approach
The government has recently signaled its plans to introduce a comprehensive crypto legalization policy framework to strengthen its position as one of the fastest-growing crypto markets in the world. According to the Finance Ministry, the government was taking a proactive approach, demonstrating its commitment to embracing the next wave of financial innovation. The ministry said:
“The government has signaled plans to announce comprehensive crypto legalization policies very soon, further strengthening Pakistan’s position as one of the fastest-growing crypto markets in the world.”
Earlier in April, Pakistan joined a growing list of countries that had appointed Binance Founder Changpeng Zhao (CZ) as Strategic advisor to their crypto councils. CZ, an influential figure within the crypto and Web3 spaces, is said to have met with Shehbaz Sharif, Ishaq Dar, Finance Minister Muhammad Aurangzeb, Punjab leadership, and other key stakeholders.
Conclusion
While the law prohibits dealing with cryptocurrencies, the State Bank of Pakistan has recommended gradually adopting digital assets, starting with centralized digital currencies. Rising mobile penetration, a vibrant freelance economy, and new government interest in Blockchain, crypto, and Web3 have positioned the youthful Pakistani population to drive the anticipated adoption of cryptocurrencies and digital finance, a strategic move to empower the young population and integrate Pakistan into the future of global finance.
Frequently Asked Questions
Is crypto legal in Pakistan?
Pakistan’s central bank banned financial institutions from processing cryptocurrency transactions in 2018. However, the country’s view of cryptocurrencies appears to be finally changing.
Is Pakistan a crypto-friendly country?
Data shows that Pakistan has between 15 million and 20 million crypto users, meaning the population embraces digital assets and aims to become a Web3 hub. Pakistan plans to legalize cryptocurrency trading, joining a growing list of nations embracing digital assets.
Is Bitcoin haram in Islam?
Whether Bitcoin and other cryptocurrencies are considered halal or haram (permissible or forbidden) in Islam is a matter of ongoing debate among Islamic scholars. While some scholars argue they are permissible, others consider them haram, especially due to factors like their speculative nature, lack of regulation, and potential for misuse.
