Bitcoin News Today: Pakistan Partners with El Salvador for Blockchain and Bitcoin Cooperation

Pakistan has made a significant move in the global crypto landscape by entering into a high-level partnership with El Salvador. This collaboration marks Pakistan’s first diplomatic initiative rooted in blockchain and Bitcoin cooperation, signaling a new era in the country’s approach to digital policy and international relations.

The landmark agreement was formalized in San Salvador, where Pakistan’s Special Assistant to the Prime Minister on Blockchain and Crypto, Bilal Bin Saqib, signed a Letter of Intent with El Salvador’s Bitcoin Office. This pact sets the stage for long-term collaboration between the two nations, focusing on shared initiatives in national Bitcoin strategies, public sector blockchain applications, and cross-border education and policy development.

Saqib emphasized the significance of this partnership, stating, “This is more than a partnership; it’s the future of international blockchain diplomacy.” The agreement underscores Pakistan’s commitment to leveraging decentralized technology for economic development and strategic alliances, positioning the country as a leader in crypto diplomacy.

This move follows Pakistan’s recent efforts to establish a robust crypto infrastructure. Earlier this month, the government passed an ordinance to create the Pakistan Virtual Assets Regulatory Authority (PVARA), which aims to license and oversee crypto service providers. Additionally, Pakistan has announced plans for a Bitcoin Strategic Reserve and the allocation of 2,000MW of surplus energy for Bitcoin mining and AI-powered innovation. These steps highlight the country’s ambition to not only regulate but also lead in the crypto space.

El Salvador, which holds over 6,000 BTC, has been a pioneer in Bitcoin-led national development. President Nayib Bukele expressed his support for the alliance, stating, “We’re honored to share our lessons with Pakistan. This is the beginning of a powerful digital brotherhood.” This South-South alliance reflects a growing trend among emerging economies using blockchain to counter global financial dependencies, making Pakistan’s crypto diplomacy a geopolitical statement as well as a domestic transformation.

While the alliance is met with optimism, challenges remain. Pakistan is currently under a $7 billion IMF loan program, and regulatory bodies may face friction balancing innovation with financial oversight. However, advocates of Pakistan’s crypto diplomacy argue that failing to act now would leave the country behind in the Fourth Industrial Revolution. One policy expert noted, “This is about sovereignty. Crypto isn’t just finance; it’s freedom.”

The formal collaboration between Pakistan and El Salvador is a significant milestone in global digital policy. As the first Muslim-majority nation to enter such an agreement, Pakistan is now firmly on the crypto map. If executed strategically, Pakistan’s crypto diplomacy could redefine how emerging nations collaborate, innovate, and assert their independence in a decentralized global economy.