Asian Nuclear Power Suspected of Buying Access to White House via Crypto
Pakistan’s decision to collaborate with a cryptocurrency company owned by the family of US President Donald Trump is not solely about digital asset development, according to a number of analysts. They assess the move as a gateway for Islamabad to strengthen political ties with the Trump administration, amid the substantial profits the president has reaped from his crypto business.
Trump’s recently released financial report shows his family’s crypto business, World Liberty Financial (WLF), generated more than US$500 million, or approximately Rp8.95 trillion (at an exchange rate of Rp17,900 per US dollar), from token sales alone last year.
According to Karachi-based economist and commentator Khurram Husain, the greatest benefit for the nuclear-armed Asian nation does not stem from the crypto project itself. “The MoU was merely an instrument to gain access. There is no real policy basis. Access is the calculation, and it has yielded extraordinary results,” he told Al Jazeera.
Pakistan was one of the first countries to partner with WLF. In January, the Ministry of Finance signed a Memorandum of Understanding (MoU) with SC Financial Technologies, a WLF affiliate, to explore the use of the USD1 stablecoin for cross-border payment transactions. The signing was witnessed by Prime Minister Shehbaz Sharif and Army Chief Asim Munir.
However, nearly six months after the signing, there has been no concrete implementation of the cooperation. Pakistani officials confirmed that no pilot project, operational licence, or transaction using the USD1 stablecoin has occurred. Despite this, several analysts believe the diplomatic value of the agreement far outweighs its economic benefits.
Ibrahim Khalil, a Canadian banking and finance professional, questioned the urgency of using the new stablecoin. “Why would anyone use USD1 in the first place, when Pakistan is receiving record remittances through the banking system and transfers are now extremely fast? USD1 will not solve that problem if it still involves banking channels,” he said.
Data from the State Bank of Pakistan shows official remittances to the country reached US$38.3 billion, or approximately Rp685.6 trillion, in the last fiscal year, a 27 percent increase from the previous year and the highest figure ever recorded. In May alone, remittance inflows reached US$4.25 billion, or around Rp76.1 trillion, and the central bank expects total remittances this year to exceed US$42 billion, or approximately Rp751.8 trillion.
Meanwhile, Pakistan is also accelerating the development of its digital asset regulatory framework. The government established the Pakistan Virtual Assets Regulatory Authority (PVARA) through the Virtual Assets Act passed in March. The new regulator is tasked with issuing licences to crypto firms and imposing sanctions on those operating without a permit.
A senior Pakistani banking executive, who spoke on condition of anonymity, said the MoU with WLF was purely exploratory in nature. “The agreement involves technical dialogue and knowledge sharing, with no commitment to implement a specific stablecoin. The regulatory architecture is far more important than who the business partner is,” the executive said.
While the economic benefits remain debatable, Pakistan’s relationship with Trump’s inner circle appears to be growing closer. Following the crypto partnership, Pakistan nominated Trump for the Nobel Peace Prize for his role in easing tensions with India. Trump also received Army Chief Asim Munir at the White House, while US Vice President JD Vance praised Pakistan’s role in assisting mediation efforts between Washington and Tehran.
Khalil assessed that the series of developments indicates the crypto partnership functions more as a diplomatic instrument than a financial innovation. “The bottom line is, this whole effort is a payment for access,” he said.