Pakistan, Trump & the Crypto Axis: Emerging Digital Alliances

Context : 

A major geopolitical and technological development is underway involving cryptocurrency diplomacy between Pakistan and World Liberty Financial Inc. (WLFI) — a firm associated with the Trump family.
This move aligns with:

• The Trump administration’s renewed engagement with Pakistan.

• A broader American strategy to reassert U.S. leadership in the global crypto economy.

• Pakistan’s shift from crypto prohibition to active digital alignment.

Pakistan–WLFI Cryptocurrency Collaboration

MoU and Strategic Goals:

• In 2025, a Memorandum of Understanding (MoU) was signed between WLFI and the newly formed Pakistan Crypto Council.

• Key individuals involved: PM Shehbaz Sharif, Army Chief Asim Munir, and the WLFI delegation.

Primary Objectives of the MoU:

• Use blockchain technology to promote financial inclusion.

• Monetise untapped national assets, especially rare earth minerals.

• Launch stablecoins for cross-border trade and remittances.

• Position Pakistan as a regional hub for crypto innovation.

Concerns and Viability:

• Pakistan’s fragile economy casts doubt on project sustainability.

• Heightened concerns about potential misuse of cryptocurrencies for terror financing and money laundering, especially from India’s perspective.

Trump’s Second-Term Crypto Agenda

Policy Shift:

• Trump reversed his earlier scepticism towards crypto and committed to dismantling Biden-era restrictions.

• The industry welcomed this pivot with strong support.

Key Executive Orders:

• Executive Order 1:

  • Introduced a National Blockchain Innovation Strategy.

  • Banned the U.S. Central Bank Digital Currency (CBDC).

  • Created a Presidential Working Group on Digital Asset Markets, led by David Sacks.

• Executive Order 2:

  • Established a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.

  • Consolidated seized assets including Bitcoin, Ethereum, and Solana.

  • Promoted stablecoins to reinforce U.S. dollar dominance.

Key Appointments and Market Reaction:

• Appointments: Elon Musk, David Sacks in senior crypto roles.

• Regulatory changes:

  • SEC paused lawsuits related to crypto.

  • Justice Department disbanded its crypto enforcement team.

• Market response:

  • Bitcoin crossed $100,000 (up from $74,000 in March 2025).

  • Trump launched the meme coin "$TRUMP", becoming a direct stakeholder.

Pakistan’s Crypto U-turn

Domestic Developments:

• Until 2024, Pakistan either banned or restricted crypto activities.

• In 2025:

  • Bilal bin Saqib appointed head of the Pakistan Crypto Council.

  • Also named Special Adviser to the Prime Minister to draft crypto regulations.

  • Estimated 25 million crypto users and a market size of $2 billion in Pakistan.

Diaspora Engagement Strategy:

• Inspired by India’s Pravasi Bharatiya Divas model.

• Designed to engage Pakistani-American tech entrepreneurs.

• Diaspora convention focused on reinforcing strategic and ideological ties through digital finance.

Strategic Implications for India

Security and Technology Risks:

• Draws parallels to India’s past underestimation of Pakistan’s nuclear programme.

• Potential for terror financing and cross-border money laundering via cryptocurrencies.

Regulatory Gaps in India:

• India has:

  • Over 100 million crypto users.

  • A market worth approximately $7 billion.

• Yet lacks a clear national regulatory or strategic framework for digital assets.

Judicial Concerns:

• In the Shailesh Bhatt case, the Supreme Court:

  • Highlighted the inconsistency of taxing crypto without proper legislation.

  • Warned of significant economic and national security risks.

Conclusion – India’s Strategic Imperative

The convergence of Trump’s crypto diplomacy and Pakistan’s digital pivot demands urgent strategic attention from India. A coherent and forward-looking approach is needed to:

• Develop a comprehensive national cryptocurrency strategy.

• Evaluate the economic, security, and geopolitical dimensions of digital finance.

• Avoid past mistakes rooted in strategic inaction and policy delay.