TLDR
- Pakistan and El Salvador form a historic crypto partnership, focusing on Bitcoin and blockchain collaboration.
- 15-20 million Pakistanis own crypto, prompting government action on regulation and digital asset innovation.
- El Salvador’s Bitcoin reserve strategy inspires Pakistan’s plans for a national Bitcoin reserve.
- Pakistan allocates 2,000 MW for Bitcoin mining, supporting its crypto ecosystem and future growth.
Pakistan and El Salvador have entered a groundbreaking bilateral agreement, focusing on Bitcoin and cryptocurrency collaboration. This partnership marks the first official engagement between the two nations in crypto space.
The agreement, which involves knowledge-sharing and technical cooperation, reflects the growing interest in digital currencies as both countries aim to leverage blockchain technology for economic growth and financial inclusion.
El Salvador’s Experience Inspires Pakistan’s Approach to Bitcoin
El Salvador’s adoption of Bitcoin as legal tender in 2021 has drawn global attention, particularly from developing nations exploring the potential of digital assets. Pakistan has expressed interest in following a similar path, especially given the significant number of Pakistanis already involved in cryptocurrency.
According to Bilal Bin Saqib, Chief Executive of the Pakistan Crypto Council, approximately 15 to 20 million Pakistanis own crypto despite regulatory challenges from the State Bank of Pakistan.
The success of El Salvador’s Bitcoin strategy, which includes accumulating Bitcoin for its national reserves, has inspired Pakistan’s government to adopt a more proactive stance on digital assets. Bilal Bin Saqib emphasized the role of El Salvador’s experiences in shaping Pakistan’s approach to Bitcoin.
President Bukele met yesterday at Casa Presidencial with the Minister of Crypto for Pakistan @Bilalbinsaqib pic.twitter.com/J2SdnTeQCJ
— The Bitcoin Office (@bitcoinofficesv) July 16, 2025
“El Salvador’s bold Bitcoin experiment has inspired governments around the world,” he said, highlighting the potential of Bitcoin to drive financial inclusion and economic stability.
New Diplomatic Partnership Driven by Crypto
The partnership between Pakistan and El Salvador was formalized through a Letter of Intent signed during Bilal Bin Saqib’s visit to San Salvador. The focus of the agreement is on facilitating public sector applications of Bitcoin and promoting blockchain-based financial systems.
Both countries are keen to explore how digital currencies can enhance their financial systems and reduce reliance on traditional monetary structures.
The meeting between Saqib and El Salvador’s President Nayib Bukele also highlighted the role of “Biplomacy” – a term used to describe the fusion of Bitcoin and diplomacy.
This collaboration opens new avenues for both nations to engage in innovative solutions to address financial challenges, with a shared goal of improving access to economic resources through cryptocurrency.
Regulatory Frameworks and Future Collaboration
Pakistan is also taking significant steps towards regulating its growing cryptocurrency market. The country established the Pakistan Digital Assets Authority (PDAA) to oversee the regulation of digital assets, cryptocurrency exchanges, and blockchain technology.
The PDAA will play a key role in curbing illicit finance and fostering responsible innovation within the sector. In addition, Pakistan’s government has allocated 2,000 megawatts of energy for Bitcoin mining, further signaling its commitment to the cryptocurrency space.
The agreement between Pakistan and El Salvador is expected to lead to ongoing collaboration on regulatory frameworks and blockchain development.
Both countries are working on creating sovereign digital asset management strategies, and the partnership will likely provide valuable insights for Pakistan as it builds its own cryptocurrency ecosystem. The initiative also holds the potential to bring billions of dollars into the formal tax net through better regulation and oversight.
With both countries committed to exploring the economic benefits of Bitcoin, the agreement sets the stage for future growth in the digital asset space.
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