New Delhi– President Donald Trump’s growing interest in cryptocurrency is shaping a shift in U.S. foreign policy toward Pakistan, according to an analysis published in the Pakistan Observer. The report suggests that Pakistan, once viewed primarily through the lens of counterterrorism and regional security, is now positioned as an important partner in Trump’s push to expand the reach of World Liberty Financial, a digital finance initiative centered on cryptocurrency and alternative payment systems.
The article notes that Trump’s business background and personal branding have long influenced his governing approach, and that his renewed focus on digital asset platforms has taken on geopolitical significance. World Liberty Financial, the initiative highlighted in the report, aims to create new channels for global investment and financial exchange outside traditional banking networks.
Pakistan’s role in this shift is linked to its rapidly growing cryptocurrency market. Data from the Pakistan Software Export Board and blockchain market research firms show Pakistan ranking among the top five countries worldwide in crypto adoption. A youthful population, strong remittance flows, and government-backed fintech development have contributed to annual digital asset transactions exceeding $25 billion, according to Chainalysis.
The report argues that Washington’s engagement with Islamabad is now being influenced by these financial trends, rather than purely military or security considerations. It also notes growing concern among European policymakers and financial watchdogs, who warn that widespread use of cryptocurrencies in state-level strategy could complicate anti-money laundering enforcement and enable illicit transfers.
The Financial Action Task Force continues to classify Pakistan as a jurisdiction requiring increased monitoring, and crypto-related financial flows have made oversight more difficult. Despite these concerns, the report says the Trump administration is moving forward, viewing digital finance partnerships as a means to expand U.S. economic influence without deeper military commitments.
U.S.-Pakistan bilateral trade has risen 11 percent in the first half of 2025, according to the report, with mobile payments and crypto-linked remittances accounting for more than $1.2 billion in value transfers. Pakistani fintech firms backed by American investors have expanded into the Gulf and Southeast Asia, benefiting from reduced transaction fees and greater cross-border interoperability.
However, the report notes that congressional committees have opened inquiries into the arrangement, including scrutiny of companies and individuals connected to Trump. Transparency advocates have raised similar concerns.
Despite the criticism, the Pakistan Observer report concludes that the Trump administration views digital finance as central to its global strategy, positioning cryptocurrency as a key tool in shaping future diplomatic and economic relationships. (Source: IANS)
