Pakistan’s crypto ecosystem reaches 27.6M users with $320B H1 transactions, partnering with World Liberty Financial and leveraging IMF-backed regulatory sandboxes to address economic challenges.
The State Bank of Pakistan approved blockchain payment sandboxes on 10 July 2024, while World Liberty Financial commits $150M to develop PKR-pegged stablecoins targeting 18M overseas workers.
Regulatory Leap Forward
Pakistan’s crypto adoption surged to 27.6 million users according to Chainalysis’ July 2024 report, processing $320 billion in transactions during the first half of 2024. This growth follows the State Bank of Pakistan’s 10 July announcement of regulatory sandboxes enabling banks to test blockchain-based remittance solutions through December 2024.
Strategic Alliances Take Shape
World Liberty Financial, associated with former U.S. President Donald Trump’s advisors, pledged $150 million on 12 July to develop AI-monitored stablecoin infrastructure. The partnership integrates TRM Labs’ compliance tools to oversee $5 billion in annual worker remittances. Former Binance CEO Changpeng Zhao now chairs Pakistan’s fintech advisory board, stating: ‘This framework demonstrates how nations can balance innovation with financial stability.’
Geopolitical Economic Engineering
The IMF’s 8 July policy shift endorsing crypto as a financial inclusion tool marks a strategic reversal from Pakistan’s 2023 mining ban. Khyber Pakhtunkhwa province attracted $60 million in Chinese mining hardware imports within days of legalizing industrial operations on 9 July. State Bank officials confirm the sandbox will trial Tether’s USDT alongside local fintech Nayapay’s solutions.
Analysts note parallels with Argentina’s 2023 stablecoin initiatives addressing dollar shortages. Pakistan’s approach uniquely combines energy surplus monetization through mining with SWIFT alternative development – crucial given its $245 billion debt burden. As IMF austerity measures tighten, the crypto framework aims to capture 35% of overseas worker remittances by 2025 through blockchain channels.
The 2023 prohibition on cryptocurrency transactions appears strategically abandoned, with officials now prioritizing energy-intensive mining operations to utilize undercapacity power plants. This pivot mirrors Iran’s 2021 crypto-mining legalization during economic sanctions, though Pakistan’s integration with formal banking channels through sandboxes presents a novel hybrid model for emerging markets.
