TLDR
- Pakistan and El Salvador have formed a historic partnership focused on expanding Bitcoin reserves.
- Pakistan aims to learn from El Salvador’s successful strategies for Bitcoin accumulation and regulation.
- Both countries are working together to explore public sector utilities for cryptocurrencies.
- Pakistan plans to set up a Strategic Bitcoin Reserve despite IMF opposition to subsidized mining.
- El Salvador continues to build its Bitcoin holdings, holding over 6,200 BTC with significant profits.
Pakistan and El Salvador have formed an unprecedented partnership to strengthen their Bitcoin strategies. The collaboration focuses on exploring public-sector utilities for cryptocurrencies, with a strong emphasis on Bitcoin. Both countries plan to enhance their Bitcoin holdings in the coming months as part of this economic relationship.
Pakistan Embraces Bitcoin as Part of Its Economic Strategy
Pakistan has gradually shifted its stance on Bitcoin, moving from skepticism to active involvement. In May, Pakistan announced its plans to set up a Strategic Bitcoin Reserve to accumulate the cryptocurrency. However, the IMF has blocked Pakistan’s initiative to subsidize electricity for Bitcoin mining, a key component of this plan.
Pakistan is now turning to El Salvador for guidance on how to build its Bitcoin reserves effectively. Bilal Bin Saqib, the CEO of Pakistan Crypto Council, met with El Salvador’s President Nayib Bukele in San Salvador to explore potential collaboration. Saqib revealed that Pakistan is eager to learn from El Salvador’s Bitcoin strategies and implement similar measures.
El Salvador’s Continued Bitcoin Investments and Plans
El Salvador has been ahead of the curve in Bitcoin adoption, making it legal tender nearly five years ago. Despite facing challenges from the IMF regarding Bitcoin purchases, El Salvador continues to expand its Bitcoin holdings. The country has accumulated 6,239 BTC, worth nearly $800 million, with notional profits exceeding $350 million.
El Salvador’s government also mines Bitcoin using geothermal volcanic energy, a move that has helped add over 400 BTC in the past three years. Although the IMF has pressured El Salvador to halt Bitcoin purchases with public funds, the country has found other ways to continue increasing its holdings. This innovative approach may serve as a model for Pakistan as it seeks to grow its own Bitcoin assets.
In addition to Bitcoin, Pakistan aims to regulate its broader cryptocurrency market. The country has established the Pakistan Digital Asset Authority (PDAA), which will oversee its $25 billion digital asset sector. The new regulatory body will play a critical role in ensuring the safe growth of cryptocurrency in Pakistan. Meanwhile, El Salvador has shown continued dedication to shaping the cryptocurrency sector through innovative policies and infrastructure.
