# PakistanExploresUSD1Payments

Pakistan Explores USD1 Stablecoin for Cross-Border Payments Insights, Analysis, and Implications for Crypto and Regulation
Pakistan recently signed a Memorandum of Understanding (MoU) with WLFI to explore the use of the USD1 stablecoin for cross-border payments, signaling a pivotal moment in the country’s financial and digital innovation journey. On the surface, it may seem like a small pilot, but when analyzed in depth, this move carries profound implications for cross-border remittances, crypto adoption, monetary policy, and regulatory frameworks. From my perspective, this initiative repres

Internally, stabilizing the exchange rate; externally, safeguarding trade—dual policy functions of USD1
From the perspective of the policy toolbox, USD1 cross-border payments serve not only the "payment" itself but also carry dual functions of stabilizing the exchange rate and protecting trade. This is especially critical for Pakistan.
In an environment where the domestic currency faces long-term pressure, exchange rate expectations often reinforce themselves, creating a vicious cycle. Once market participants widely expect the rupee to continue depreciating, businesses and individuals will ac