Bitcoin News Today: Pakistan El Salvador Form Crypto Alliance Amid IMF Concerns

Pakistan and El Salvador have formalized diplomatic ties with a focus on cryptocurrency cooperation. This partnership was initiated following a meeting in San Salvador between Bilal Bin Saqib, special assistant to Pakistan’s prime minister on crypto and blockchain, and El Salvador President Nayib Bukele. The discussions centered on knowledge-sharing in digital asset infrastructure and policy, with Pakistan planning to structure its crypto markets under regulatory oversight.

Pakistan has recently allocated 2,000 megawatts for Bitcoin mining and intends to establish a national Bitcoin reserve. The government has also launched the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee the domestic digital asset market. Earlier this year, Saqib stated that up to 20 million Pakistanis currently hold crypto, despite ongoing caution from the country’s central bank.

El Salvador adopted Bitcoin as legal tender in 2021 and continues to acquire the asset while under an International Monetary Fund (IMF) agreement. According to government figures, the country holds 6,238 Bitcoins. Tether also opened a headquarters there in January. El Salvador’s economy minister, Maria Luisa Hayem, emphasized the importance of Bitcoin, stating that there is an asset accumulation from both the government and private sector perspectives.

Pakistan is currently under a $7 billion IMF program that runs through 2027. The fund has expressed concerns about state-level digital asset purchases, but El Salvador has continued its policy regardless of the terms. By forming bilateral channels focused on infrastructure and governance, countries under IMF influence may seek greater autonomy in structuring digital asset policies without triggering compliance issues or threatening macroeconomic stability.

Other emerging economies with large unbanked populations are also exploring sovereign digital asset programs, seeking to reduce reliance on foreign exchange reserves and expand financial access without altering core monetary frameworks. This move by Pakistan and El Salvador could pave the way for similar collaborations in the future, potentially including technology transfer, operational partnerships, or coordinated infrastructure planning.

However, Pakistan may face challenges in implementing a national Bitcoin reserve, including central bank resistance, volatility management, custodial infrastructure, and compliance with existing IMF conditions. Legal clarity on asset classification and secure storage mechanisms will also be essential for the successful implementation of this initiative.