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International cooperation

Pakistan's Crypto Diplomacy: A New Phase in Strategic Relations

Strategic Insights

— 1 min read

Pakistan's foray into crypto diplomacy, leveraging digital assets and blockchain technology, has gained momentum with CEO Bilal Bin Saqib's collaboration with World Liberty Financial, a firm owned by Eric Trump and Donald Trump Jr, and its managing partner Zack Witkoff. This alliance positions Pakistan as a potential gateway for US-backed Web3 ventures targeting emerging markets. The country's crypto diplomacy has four key elements, and here are five specific, actionable steps to strengthen its position.

Key Takeaways:

  • Pakistan's crypto diplomacy involves leveraging digital assets and blockchain technology to foster international partnerships, influence policy, attract investment, and gain strategic advantages in global relations.
  • The country's collaboration with World Liberty Financial, a firm owned by Eric Trump and Donald Trump Jr, signals a new phase in Pakistan's crypto diplomacy.
  • Pakistan's crypto diplomacy has four key elements: strategic economic partnerships, geopolitical leverage, integration into the new Global Financial Systems, and navigating regional rivalries.
  • To strengthen its position, Pakistan must move beyond ad-hoc bans and issue clear, investor-friendly regulations.
  • Pakistan must create and fund a coordinated national strategy for blockchain deployment, establish a crypto-friendly SEZ with zero capital gains tax, use tokenized bonds to raise capital, and digitize remittance flows using blockchain.
  • Pakistan has 25 million active crypto users and $300 billion in annual transaction volume, positioning it as a South Asian crypto hub.
  • The World Liberty Financial partnership involves Eric Trump, Donald Trump Jr, and Zack Witkoff.
  • The collaboration aims to leverage Pakistan's domestic crypto advocacy with global financial interests.
  • Pakistan's crypto diplomacy has potential benefits for the country's economy, including attracting foreign investment, fostering blockchain innovation, and creating high-tech jobs.

Statistics:

  • Pakistan has 25 million active crypto users.
  • The country has $300 billion in annual transaction volume related to cryptocurrency.
  • $2.5 billion are annual fees charged by financial intermediaries, including banks, MTOs, and exchange companies, for remittance flows.
  • Pakistan aims to digitize remittance flows using blockchain to enhance transparency, speed, and cost-efficiency.

Sources:

  • [Pakistan's Crypto Council (PCC)]
  • [World Liberty Financial]
  • [Source: The Given Article]

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