Pak-US Crypto Diplomacy: A New Chapter to Win Trump’s Support
By ZB Hussain
Pakistan’s leadership—both military and civilian have seen Donald Trump’s recent election win as bad omen.
They believed that Trump’s return could result in release of Imran Khan who is currently behind bars. Khan has been a real threat for both military and civilian leadership in Pakistan.
The Trump’s victory was a good news for Khan’s supporters, who believed that Trump could build pressure Pakistan’s administration to release Khan. So, both Pakistani civilian and military leadership realized this threat and acted too fast to win Trump’s favor.
Early Moves to Please Trump
The Pakistan’s administration had acted fast to hand over the U.S wanted terrorists. So, Trump lauded Pakistani efforts in this regard.
Secondly, Trump had a good relations with Israel. Therefore, Pakistani administration sent a group of Pakistani journalists, educators, and influencers on a secret visit to Israel. This was another gesture to please Trump’s strong pro-Israel stance.
And then finally comes the crypto twist.
The Trump Family’s Crypto Push
Melania Trump, a wife of US President Donald Trump had launched her own cryptocurrency called “Official Melania Meme” ($MELANIA).
Donald Trump had also launched $TRUMP, his meme coin. Both had introduced these two digital currencies before his inauguration.
This had led to a major buzz in the crypto world.
Trump’s evergreen friend, Elon Musk, has also been a key figure in crypto world market. His tweets have been causing price surges and crashes. Tesla had also bought $1.5 billion in Bitcoin back in 2021 that had led to a huge spike in crypto prices.
Pakistan Sees an Opening
Pakistan’s administration has also been very witty in realizing Trump’s growing interest in digital assets. So, Pakistani administration has seen it as an opportunity to enjoy close ties with Trump.
A U.S. delegation had visited Pakistan and Islamabad had warmly welcomed it, sparking what many now call “Pak-US Crypto Diplomacy.” This aimed at strengthening ties with Trump and use it as a bargaining chip to create distance between Trump and Imran Khan.
U.S. Delegation Visits Pakistan
A high-profile U.S. delegation reached Islamabad in early 2025 through backchannel diplomacy.
The delegation had comprised of Gentry Beach Jr., Nikita Goldsmith, Alex Malkov, and Jerad Finck. They arewell-known in the blockchain and crypto world.
They had held meetings with Pakistani officials and convinced to integrate crypto and blockchain into Pakistan’s financial system.
They even committed over $1 billion in potential investments to lure Pakistani side to allow crypto currency in Pakistani market.
Pakistan Responds Swiftly
Following the visit, Pakistan moved quickly and set up the Pakistan Crypto Council (PCC) to oversee implementation process of crypto currency in country’s market.
The government had appointed Young British-Pakistani entrepreneur Bilal Bin Saqib as Chief Adviser to the Finance Minister. This was followed appointment of Changpeng Zhao (CZ), the founder of Binance, as the Strategic Adviser to the PCC.
This gave signal to Trump administration Pakistan’s serious commitment to crypto integration into financial market.
Virtual Assets Bill 2025: A Game Changer
The government had introduced the Virtual Assets Bill 2025 aimed at regulating crypto trading, issuance, and management.
It will also help to create Virtual Asset Zones in areas with excess renewable energy.
The government will establish a National Virtual Assets Regulatory Commission to ensure compliance with AML and CTF laws.
It will also launch a digital Rupee, backed by the Pakistani Rupee.
The government has also launched a public awareness campaign to convince the masses to accept digital currency.
Looking Abroad: Learning from Others
The digital currency is considered to be gambling in the world market. Therefore, Pakistan should study good and bad cases of crypto in the global market.
There have been different case studies in the world.
- Kenya’s BitPesa: it had lowered remittance costs and helped unbanked communities
- The U.S.: Crypto is used in retail (Whole Foods), e-commerce (Shopify), and even real estate
These examples can offer a roadmap for Pakistan’s crypto journey.
Crypto Adoption: Global Stats
- At present, there are over 560 million users globally
- An average global ownership rate is 6.8%
- Vietnam has been leading the way where over 21% of its population is using crypto
Pakistan has potential to use the crypto in sectors like healthcare, supply chains, and finance.
Cautionary Tales: What to Avoid
Crypto isn’t all upside as there have been some disaster cases:
- Mt. Gox Hack – The users had lost 750,000 Bitcoins. Therefore a cybersecurity is a key in use of digital currency.
- FTX Collapse – Poor management has caused billions in losses.
- OneCoin Scam – A $5 billion Ponzi scheme had disguised as a crypto revolution.
Therefore, in this scenario, Pakistan must prioritize strong regulations and investor protections.
Recommendations for a Safer Crypto Future
1. Strong Regulation
- Pakistan will have to enforce the Virtual Assets Bill 2025
- It will have to set up a regulatory body for AML and CTF compliance
2. Fight Money Laundering
- Use of Know Your Customer (KYC) tools is important
- Track suspicious activity with blockchain analytics will be required
Conclusion: Crypto as a Diplomatic Bridge
Pak-US crypto diplomacy isn’t just about digital coins only but is a roadmap to improve relations with Trump administration. Pakistani government is in hot water due to Imran Khan’s popularity and therefore, it is going to use it as ‘bargaining chip” with Trump administration.
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