Bitcoin News Today: El Salvador Pakistan Form Crypto Alliance to Boost Bitcoin Policy

El Salvador and Pakistan have formalized a significant diplomatic alliance centered around cryptocurrency collaboration, marking the first formal diplomatic ties between the two nations. This partnership is focused on policy exchange and knowledge sharing in blockchain and cryptocurrency regulation, with a particular emphasis on Bitcoin policy and mining plans.

The agreement was formalized during a meeting in San Salvador between Bilal Bin Saqib, Pakistan’s special assistant on crypto and blockchain, and President Nayib Bukele of El Salvador. Saqib, who also leads the Pakistan Crypto Council, has been instrumental in driving Pakistan’s digital asset development in recent months. This alliance allows Pakistan to leverage El Salvador’s experience in integrating crypto into national strategy, as El Salvador is known for its Bitcoin-first policy.

Pakistan is adopting a bold approach to digital assets, planning to mirror El Salvador’s Bitcoin accumulation model. In May, Pakistan announced its intention to set up a national Bitcoin reserve and allocate 2,000 megawatts of energy for mining operations. However, the International Monetary Fund (IMF) has restricted Pakistan from using subsidized electricity for mining, a constraint that the country is navigating despite a $7 billion IMF loan agreement. The new alliance with El Salvador may offer alternative routes for growth and innovation outside IMF constraints.

El Salvador, which adopted Bitcoin as legal tender in 2021, has amassed 6,239 BTC, now worth over $800 million. The country continues to buy and store Bitcoin, using geothermal power from volcanoes for mining, a strategy unique to the region. Despite criticism from global financial institutions and IMF pressure, El Salvador remains committed to its crypto-centric policies, highlighting its determination to advance its digital asset agenda.

To regulate its growing crypto market, Pakistan launched the Pakistan Digital Assets Authority in May. This body will oversee digital asset activity in a market estimated at $25 billion, with around 20 to 40 million Pakistanis estimated to own or use digital assets. The partnership with El Salvador marks a significant pivot for Pakistan’s economic strategy, seeking to explore innovation while balancing global financial obligations. This diplomatic step could open new pathways for blockchain development in Pakistan.

The collaboration between El Salvador and Pakistan is driven by their shared ambition to leverage blockchain technology and cryptocurrencies for economic growth. By sharing governance strategies and expertise in Bitcoin accumulation, both nations aim to enhance crypto infrastructure and promote financial inclusion. This partnership is expected to foster innovation and development in the crypto space, positioning both countries as leaders in the global crypto landscape.

The agreement includes plans for joint efforts in blockchain policy and mining, aiming to create a more robust and secure blockchain ecosystem. This collaboration underscores the growing importance of cryptocurrencies and blockchain technology in international diplomacy, setting a precedent for other nations to follow suit. As both countries continue to explore the possibilities offered by blockchain and cryptocurrencies, their collaboration is likely to yield significant advancements in the field.