Pakistan Establishes Bitcoin Strategic Reserve, Inspired by US

Bitcoin, the world's largest cryptocurrency, has gained significant traction as a strategic reserve asset, with institutions, corporations, and even governments turning to it to hedge against inflation, achieve financial stability, and strengthen economic sovereignty. Much like gold, Bitcoin offers a unique opportunity for asset diversification due to its digital infrastructure, decentralized nature, and fixed supply. This makes it an appealing store of value, especially during periods of global uncertainty and geopolitical risk.

In the latest episode of the Clear Crypto Podcast, the CEO of Lever, Jullian Duran, makes the case for a new kind of financial firepower; using Bitcoin not to cash out, but to unlock opportunity. Duran, who previously worked at Bridgewater and Marathon Digital, said his mission is rooted in personal experience and in the unrealized potential of Bitcoin-rich users who find themselves asset-rich but liquidity-poor. The idea behind Lever, according to Duran, is that Bitcoin is turned into “pristine collateral” that opens doors in the real world, especially in industries and communities that have been historically underinvested. “The whole idea with Lever is, how can you use your Bitcoin to have a footprint in something that's unrelated to crypto, not to undermine crypto, but simply to earn dollars from another source.”

Unlike speculative DeFi protocols or meme tokens, Lever is designed to generate returns from what Duran calls “boring industries,” otherwise known as sectors like utilities, housing and infrastructure. These sectors, he argues, offer dollar-based yields that are uncorrelated with crypto markets. And for many Bitcoin OGs, that flexibility is more than financial. It’s personal. “I was at a Bitcoin billionaires party in Puerto Rico... an OG looked at this mansion and said, ‘I could afford this, but I’d have to sell Bitcoin,’” Duran recalled. “That scene replays in my head. You have here somebody who is a multi-millionaire, but who really can’t use that to just live life ambitiously.”

According to Duran, that’s what he’s seeking to solve. “Firepower, it’s an exercise of freedom,” he said. “To the extent that you can use your Bitcoin to acquire fiat without selling it, it allows you to buy better houses, send your kids to better schools, travel... be free, in the way that the currency was intended to enable freedom.”

The concept of Bitcoin as a reserve asset gained momentum when former US President Donald Trump vowed to deregulate cryptocurrency and introduce a Strategic Bitcoin Reserve (SBR). This promise was finalized this year with an executive order to make Bitcoin part of the nation’s reserve. Following the US, other nations, including Pakistan, are also exploring the idea of stockpiling BTC for their own reserves. Pakistan, the fifth-most populous country in the world, has shown a keen interest in crypto assets. The government initiated the exploration of a “National Crypto Council” to oversee the development of a comprehensive regulatory framework for digital assets and to attract foreign investment. The council proposed using excess energy to mine Bitcoin and power AI data centers, and later announced the allocation of 2,000 megawatts of surplus energy for these purposes. A plan to accumulate BTC for a national treasury was also put forward.

Bilal Bin Saqib, the head of Pakistan's crypto council, revealed the country's plan to establish its own Bitcoin Strategic Reserve, inspired by the US. Saqib announced that Pakistan has set up a national BTC wallet and is holding digital assets in state custody as a sovereign reserve. He invited builders to create for the unbanked and scale with the country’s youth, emphasizing Pakistan's shift towards becoming a forward-looking hub of digital innovation. Pakistan's move to establish a Bitcoin Reserve has strengthened its ties with the US. Saqib met with Robert “Bo” Hines, executive director of the US Council on Digital Assets, to discuss stablecoins and building bridges between the two countries. Both nations will work closely on knowledge building and sharing, with Pakistan looking to learn from the US's frameworks and innovations.

However, Pakistan's ambitious plan faces challenges, including pushback from the International Monetary Fund (IMF). The IMF has raised concerns over Pakistan’s decision to allocate its electricity to Bitcoin mining, citing potential impacts on resource distribution and fiscal pressures. The agency has also expressed skepticism about the viability of Pakistan's Bitcoin strategy, particularly in light of the crypto sector's high volatility. Despite these challenges, Pakistan remains committed to its Bitcoin reserve plan. The country aims to use the assets seized from criminal activities to set up a Bitcoin wallet and deploy it in DeFi for passive income. This strategy is part of Pakistan's broader goal to lead the digital asset race in emerging economies, though the path to that leadership will be slow and risk-mitigated.

The IMF's cautious approach towards cryptocurrencies is expected to continue, as the agency aims to safeguard global financial stability and regulate fiat currencies. However, Pakistan's pursuit of a sovereign Bitcoin strategic reserve signals a major shift in how emerging economies might harness decentralized assets to strengthen their financial systems. Whether Pakistan can successfully navigate this rough environment will determine if its Bitcoin strategy becomes a model or a cautionary tale.