Limitations of Pakistan's crypto diplomacy with US come to the fore
New Delhi, July 3
US President Donald Trump's recent disclosure about his earnings after taking over the country's top post clearly reveals that Pakistan has earned his goodwill by backing his crypto enterprise, but is it durable or even beneficial for the country?
The figures that are now out in the public domain show that the Trump family earned a whopping $1.4 billion through the crypto route, which far exceeds the income from its main real estate business. World Liberty Financial, the Trump family-controlled digital finance company, also signed an agreement with Pakistan's newly created Pakistan Crypto Council to promote blockchain infrastructure and the USD1 Stablecoin in Pakistan.
This helped Islamabad to get into the good books of the US President but has ultimately ended up embarrassing him.
Pakistan followed this up with offers of cooperation in critical minerals. The country's de facto ruler, Army chief Field Marshal Asim Munir, visited the White House to exhibit rare earth deposits to Trump, wooed American investors and signed trade and mining agreements in tune with Trump's transactional approach to diplomacy, according to an article in StratNews Global.
Following Operation Sindoor, Islamabad found itself diplomatically cornered. India had demonstrated both military resolve and political confidence. Washington's traditional balancing act looked increasingly tilted towards New Delhi. Munir and lame-duck Prime Minister Shahbaz Sharif began with business to get Trump on their side, the article stated.
The deal immediately raised conflict-of-interest questions and Congressional investigations in Washington, because the sitting US President stood to benefit financially from policies that could directly aid one of America's foreign partners.
Islamabad also enthusiastically backed Trump's claim that he had brokered the India-Pakistan ceasefire after Operation Sindoor, even nominating him for the Nobel Peace Prize. This enabled them to get the extraordinary White House meeting for Field Marshal Asim Munir.
This was the same Trump who had once accused Pakistan of giving America "nothing but lies and deceit" while cutting security assistance. Now Pakistan was suddenly back in favour, the article stated.
Yet there is another side to this story. Pakistan may have won Trump's attention, but it has not solved Pakistan's problems. The country's crypto ambitions rest on remarkably weak foundations. Pakistan continues to struggle with chronic fiscal instability, repeated IMF bailouts, low tax collection, external debt, persistent balance-of-payments pressures and severe electricity shortages, it noted.
Its government has even proposed allocating 2,000 megawatts of electricity for Bitcoin mining despite regularly suffering power deficits that affect ordinary consumers and industry alike.
Cryptocurrency cannot fix any of those structural weaknesses. If anything, it could make them worse. An assessment by the Bengaluru-based Takshashila Institution is sobering. It concludes that serious crypto adoption is likely to be a net negative for Pakistan's economy while simultaneously increasing risks for India's national security. Crypto's volatility makes it unsuitable as a strategic reserve. Wider adoption could weaken Pakistan's currency, reduce the central bank's control over monetary policy, encourage capital flight, and shrink already inadequate tax revenues, the article contends.
In contrast, India's response to the Trump administration has been measured and practical. New Delhi continues to engage not merely with the White House but with Congress, the Pentagon, the State Department and American industry, institutions that provide continuity long after individual presidents leave office, the article added.
— IANS
Reader Comments
So Pakistan is offering 2,000 MW of electricity for Bitcoin mining when they can't even provide reliable power to their own citizens? That's not diplomacy, it's desperation. And the conflict-of-interest issues with Trump's crypto earnings are glaring. India is right to take the long-term institutional approach instead of chasing these short-term gimmicks.
From an outsider's perspective, this is fascinating. Pakistan is using cryptocurrency as a diplomatic lever, but the Takshashila Institution analysis is spot-on: crypto volatility could wreck their fragile economy. India's steady engagement with the entire US government apparatus seems much more professional. No wonder Washington's tilt is towards New Delhi.
Remember when Trump called Pakistan 'nothing but lies and deceit'? Now they're nominating him for the Nobel Peace Prize and giving him crypto deals. Ye bhi koi diplomacy hai? 😂 India doesn't need to buy goodwill—our strategic importance speaks for itself. Pakistan's approach is pathetic and short-sighted.
It's concerning that a sitting US President is personally profiting from foreign policy decisions. The conflict-of-interest issues here are massive. Meanwhile, India's approach of building relationships across branches of US government is textbook statecraft. Pakistan's crypto gambit may get them a photo-op but won't solve their chronic fiscal instability or energy crisis.
Pakistan is so desperate for international relevance that they're using crypto, rare earths, and Nobel nominations just to get Trump's attention. Meanwhile, India's approach is dignified and strategic—we engage with the entire US ecosystem: Congress, Pentagon, State Department, businesses. That's how you
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.