Bitcoin News Today: Pakistan El Salvador Partner on Bitcoin Adoption and Blockchain

Pakistan and El Salvador have formalized a significant partnership by signing an agreement to collaborate on Bitcoin adoption at the national level. The agreement was signed during a meeting between Bilal bin Saqib, Chairman of the Pakistan Cryptocurrency Council (PCC) and Special Advisor to the Prime Minister on Cryptocurrencies and Blockchain, and Nayib Bukele, the President of El Salvador. The collaboration is centered around several key areas, including Bitcoin mining, strategic reserves, and educational programs focused on cryptocurrencies.

Saqib views El Salvador as a model for digital transformation in a resource-constrained environment. The official discussions centered on leveraging El Salvador’s experience as a model for countries with limited resources but ambitious plans for digital transformation. Saqib emphasized the importance of seizing the moment, stating that emerging economies need not wait—they can embrace blockchain and cryptotechnology now, guided by Bukele’s example.

In addition to advancing Bitcoin adoption, both countries agreed to collaborate on blockchain-based financial inclusion and the development of crypto policies for emerging economies. The Letter of Intent they signed outlines joint efforts to promote the public adoption of Bitcoin, expand financial inclusion, and foster supportive regulatory frameworks.

Pakistan has ambitious plans to allocate 2,000 megawatts of electricity for Bitcoin mining and to create a national Bitcoin reserve. However, these plans are contingent on approval from the International Monetary Fund (IMF), as Pakistan is currently under a $7 billion IMF program that runs through 2027. The IMF has expressed concerns about the energy impact and regulatory risks associated with Pakistan's Bitcoin mining plans, particularly if crypto miners receive subsidized electricity. Despite these concerns, Pakistan's power grid often runs with surplus capacity, especially in winter, which could mitigate some of the potential strain on infrastructure.

El Salvador, despite ongoing criticism from the IMF, continues to actively accumulate Bitcoin. The country holds more than 6,240 BTC. Meanwhile, Pakistan is increasing its participation in the digital economy, bolstered by a $7 billion IMF loan program extending through 2027. Saqib also discussed plans for establishing a strategic Bitcoin reserve during The Bitcoin Conference in May 2025, reflecting Pakistan’s drive to secure a role in the future digital financial ecosystem.

This partnership represents a pragmatic approach for emerging economies to harness the transformative potential of cryptocurrency and blockchain technology, aiming for greater financial inclusion, innovation, and resilience amid a rapidly evolving global economy. The collaboration between Pakistan and El Salvador is part of a broader effort to enhance cryptocurrency cooperation and establish a formal diplomatic relationship between the two nations.

One of the notable aspects of this agreement is the deployment of educational programs aimed at promoting cryptocurrency literacy. Both countries recognize the importance of educating their populations about digital assets and blockchain technology, which will be crucial for the successful adoption of Bitcoin and other cryptocurrencies.

Pakistan has taken steps to bring structure to its growing cryptocurrency market by launching the Pakistan Virtual Assets Regulatory Authority in July 2025. This authority is tasked with licensing and overseeing exchanges, stablecoins, wallets, and other digital asset services. This move follows an April 2025 Letter of Intent between the Pakistan Crypto Council and World Liberty Financial, which aims to fast-track blockchain adoption through regulatory sandboxes and stablecoin pilots.

Both countries face challenges in their crypto ambitions. El Salvador, for instance, is still navigating IMF restrictions on new Bitcoin purchases, despite holding over 6,000 BTC. Pakistan, on the other hand, must balance its crypto ambitions with economic recovery and tight fiscal oversight. The IMF estimates that Pakistan will need over $100 billion in external funding by 2029, highlighting the economic challenges the country faces.

Despite these hurdles, the meeting between Bilal Bin Saqib, CEO of the Pakistan Crypto Council, and El Salvador’s President Nayib Bukele in San Salvador underscores the growing importance of digital assets in international alliances. This partnership not only strengthens diplomatic ties between the two nations but also sets a precedent for other countries looking to embrace cryptocurrency and blockchain technology.