Pakistan and El Salvador have formalized a joint agreement to deepen cryptocurrency cooperation through a strategic knowledge-sharing partnership.
According to Bloomberg, Bilal bin Saqib, Pakistan’s Head of Crypto Council and special assistant to the prime minister on crypto and blockchain, recently met with El Salvador’s President Nayib Bukele in South America to finalize the pact. This marks the first time two countries are placing cryptocurrency at the centre of a bilateral relationship.
El Salvador, which became the world’s first country to adopt Bitcoin as legal tender in September 2021, has accumulated 6,238 Bitcoin worth approximately $745 million. In contrast, Pakistan is only beginning its journey into the digital asset space, with plans underway to create its own strategic Bitcoin reserve.
In June, Bilal Bin Saqib, visited the White House to present the country’s new Strategic Bitcoin Reserve and discuss digital asset cooperation with the United States.
However, Pakistan’s crypto ambitions have faced roadblocks from the International Monetary Fund (IMF). Earlier this month, the IMF rejected Pakistan’s proposal to subsidize electricity for Bitcoin mining operations, despite government plans to allocate 2,000 megawatts of additional power for mining activities. The IMF has consistently discouraged countries from integrating cryptocurrency into governance policies, a stance that remains unchanged as Pakistan continues under a $7 billion loan agreement lasting through 2027.
El Salvador, meanwhile, has continued expanding its Bitcoin holdings despite similar pressures from the IMF.
“There’s a commitment from President Bukele to keep accumulating assets as a way to do precisely that. Bitcoin keeps being an important project,”
Economy Minister Maria Luisa Hayem said in an earlier interview in June.
The newly formed partnership is expected to equip Pakistan with practical insights from El Salvador’s trailblazing experience in Bitcoin accumulation and mining, potentially paving the way for the South Asian nation to accelerate its own government-led digital asset initiatives.
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