Pakistan has moved stablecoins into formal policy discussions. The country’s virtual asset regulator said it signed a memorandum of understanding with SC Financial Technologies on January 14, 2026. The company was described as an affiliate of World Liberty Financial, making this one of the earliest publicly disclosed ties between the crypto firm and a sovereign state.
USD1 discussions are framed as an exploratory step
The MoU centers on whether the Pakistan USD1 stablecoin can be used for cross-border payments and regulated digital transactions. Under the arrangement, SC Financial Technologies will work with Pakistan’s central bank to examine how the USD1 stablecoin could fit into a regulated virtual payments framework. The token is described as a fully dollar-backed stablecoin built for global payments and cross-border settlement.
Officials said this is not a full launch. It is an early-stage effort focused on technical and regulatory evaluation of new digital payment models. If adopted later, the stablecoin could operate alongside Pakistan’s planned central bank digital currency, commonly referred to as the digital rupee.
Meetings covered payments, forex processing and settlement
The announcement came during a visit by Zach Witkoff. The report identified him as CEO of both World Liberty Financial and SC Financial Technologies, and said he met senior Pakistani officials to discuss digital payments, foreign exchange processes, and settlement systems. The scope remains limited to talks, but the agenda shows where the work is aimed.
Remittance flows give the proposal economic relevance
Pakistan’s economy has shown some signs of stabilization, though pressure remains. The source said GDP growth improved to 3.0% to 3.7%, inflation cooled to around 4% to 6% from earlier highs, and foreign reserves have recovered. At the same time, high energy costs, taxes, and job creation challenges continue to weigh on the outlook.
That makes cross-border transfers especially important. The report said Pakistan generates more than $30 billion in annual remittances, while traditional transfer channels are often slow and expensive. If a stablecoin model is approved in the future, it could be used to lower transfer costs, speed up settlement, and improve transaction transparency.
Crypto adoption and regulation are already taking shape
As of January 2026, Pakistan was described as one of the world’s top crypto-adopting countries at the user level, supported by remittance demand, grassroots digital experimentation, and long-running peer-to-peer trading activity. On the regulatory side, the government has already created the Pakistan Virtual Asset Regulatory Authority, or PVARA, as well as a Cryptocurrency Council.
Finance Minister Muhammad Aurangzeb said the country wants to stay ahead by working with trusted global players while making sure innovation remains aligned with regulation, stability, and national interest.