Bitcoin News Today: El Salvador Pakistan Form Bitcoin Alliance to Boost Public Sector Use

El Salvador and Pakistan have established a new alliance focused on the public-sector use of cryptocurrency, with a particular emphasis on Bitcoin. This partnership aims to expand both nations' Bitcoin reserves despite facing international resistance. The collaboration is centered around knowledge-sharing and strategic planning to integrate Bitcoin into public services, mirroring El Salvador's successful implementation of Bitcoin as legal tender.

The bilateral agreement between the two countries was formalized through a Letter of Intent (LoI) signed by Bilal Bin Saqib, Minister of State for Pakistan, and representatives from El Salvador. This pact underscores a mutual commitment to leveraging Bitcoin to enhance financial inclusion and economic stability. Pakistan, in particular, is looking to emulate El Salvador's Bitcoin accumulation strategy, which has been met with opposition from the International Monetary Fund (IMF).

Pakistan has already laid the groundwork for deeper crypto adoption, launching a Strategic Bitcoin Reserve and creating the Pakistan Digital Asset Authority to oversee its growing crypto market. The South Asian country is seeking to replicate El Salvador’s Bitcoin strategy, despite facing IMF resistance to its plans, including efforts to subsidize power for mining.

El Salvador, meanwhile, continues to build its Bitcoin holdings—now at 6,239 BTC worth nearly $800 million—despite pausing public-sector purchases to comply with IMF loan terms. The country has also mined hundreds of Bitcoin using geothermal energy and maintains a profit on its position of more than $350 million. El Salvador's adoption of Bitcoin has been driven by the goal of reducing remittance costs for its citizens. The government's Chivo wallet and Bitcoin's Lightning Network have played crucial roles in facilitating low-cost, efficient transactions. This model serves as a blueprint for Pakistan, which seeks to achieve similar benefits through its own public-sector initiatives.

The alliance between El Salvador and Pakistan represents a significant step in the global adoption of Bitcoin. By sharing knowledge and resources, both nations aim to overcome the challenges posed by international pushback and regulatory hurdles. This collaboration not only strengthens their respective economies but also sets a precedent for other countries considering the integration of cryptocurrency into their financial systems.

The strategic partnership between El Salvador and Pakistan is a testament to the growing acceptance of Bitcoin as a viable financial tool. Despite the IMF's opposition, both countries are committed to exploring the potential of Bitcoin to drive economic growth and financial inclusion. This alliance is poised to have a lasting impact on the global cryptocurrency landscape, paving the way for more nations to embrace digital currencies in the public sector.