Pakistan has taken a significant step towards integrating digital assets into its financial system by signing a Memorandum of Understanding (MOU) with World Liberty Financial (WLF) to explore the use of the USD1 stablecoin. The agreement, involving the State Bank of Pakistan (the central bank), is focused on examining how the dollar-pegged stablecoin could be used for payments, settlements, and broader financial infrastructure.
The primary goals are to make cross-border transactions faster and cheaper, with the potential to reduce Pakistan's substantial annual remittance costs, which are estimated at nearly $30 billion. The USD1 stablecoin, launched by WLF in late 2025, is described as fully collateralized and designed to operate across multiple blockchains to facilitate global payments.
Under the exploratory agreement, the State Bank of Pakistan will work to integrate USD1 into its digital payment infrastructure. This would allow businesses and individuals to use the stablecoin for international payments while remaining within the official system, aiming to enhance security and transparency without displacing the national digital rupee.
The MOU is currently non-binding and focused on research, pilots, and regulatory dialogue. Any formal implementation of USD1-related services will depend on future regulatory approvals, technical assessments, and alignment with Pakistan's monetary policies. This move signals a growing trend of governments in emerging markets responsibly exploring regulated stablecoins to modernize financial rails, particularly for trade finance and remittances.
