Pakistan’s Strategic Embrace of Cryptocurrency
Pakistan has begun adopting cryptocurrency not only for economic benefits but also for strategic purposes potentially to gain favor with the United States In contrast India continues to grapple with regulatory uncertainty and security concerns while countries like Bhutan are using crypto to diversify their economies Meanwhile in the US questions are being raised over stablecoin regulations and potential conflicts of interest prompting an even stronger need for India to develop a clear comprehensive crypto policy to mitigate financial and security risks
Just weeks before the Pahalgam attack something unusual happened in Islamabad Changpeng Zhao the China born Canadian businessman and founder of Binance the world’s largest cryptocurrency exchange agreed in early April to serve as an advisor to the Pakistan Crypto Council (PCC)
Formed in March the PCC’s goal was to create a framework for cryptocurrency in Pakistan a country that had until then maintained a cautious stance toward digital assets At the time many questioned Pakistan’s motivation for welcoming crypto Officials claimed it was a tool to attract foreign investment However in the following months particularly during Operation Sindoor it became clear there was also a strategic dimension to the move
Pakistan also partnered with World Liberty Financial (WLF) a cryptocurrency company linked to the family of US President Donald Trump as part of its strategy to gain influence in the White House. Combined with gestures like nominating Trump for a Nobel Peace Prize this may have contributed to the US’s relatively restrained response during the conflict
Finally on July 9 President Asif Ali Zardari signed an ordinance establishing the Pakistan Virtual Asset Regulatory Authority (PVARA) an autonomous federal body empowered to license regulate and supervise entities dealing in virtual assets (VA)
