Pakistan Establishes State Backed Bitcoin Reserve

Pakistan has made a significant shift in its cryptocurrency policy by announcing the establishment of a state-backed Bitcoin reserve. This move, revealed at the Bitcoin 2025 conference in Las Vegas, marks a pivotal change in the country's stance on digital assets, transitioning from rejection to embrace. The initiative is led by Bilal bin Saqib, the head of the Pakistan Crypto Council and Minister of Crypto and Blockchain, who declared that Pakistan will retain Bitcoin at the national level with no plans to sell these assets.

Pakistan’s approach is modeled after the recent efforts of the United States to build up its Bitcoin reserves, aligning the country’s strategy with global leaders in crypto adoption. This policy shift is not just a change in stance but also an attempt to integrate digital assets into the country’s long-term economic strategy. The specifics of the reserve’s size and funding remain unknown, but the commitment to holding Bitcoin indicates Pakistan’s intention to include crypto assets in its national portfolio.

Just a few years ago, Pakistan’s government and financial regulators openly rejected cryptocurrency legalization, deeming digital assets illegal and prohibiting their official use. The change in policy is driven by the growing global interest in blockchain and digital money, particularly the U.S. government’s increasingly positive attitude toward cryptocurrencies. The creation of the Pakistan Crypto Council, led by Bilal bin Saqib, was a turning point, bringing together government officials and crypto industry experts to explore blockchain, stablecoins, and decentralized finance (DeFi) applications within Pakistan’s financial system.

Pakistan’s plans for cryptocurrency extend beyond accumulating Bitcoin. The government has allocated 2,000 megawatts of electricity for crypto mining activities and AI infrastructure initiatives, ensuring the sustainability of large-scale blockchain operations and positioning Pakistan to compete with established crypto mining nations. Additionally, the government is developing a comprehensive regulatory framework for digital assets, aiming to license crypto exchanges, regulate DeFi protocols, and protect consumers. These regulations are expected to be formalized in the next government budget.

Pakistan’s crypto strategy includes strategic collaborations with global crypto players. Changpeng Zhao, founder of Binance, one of the largest cryptocurrency exchanges globally, serves as an advisor to the Pakistan Crypto Council. This partnership provides Pakistan with valuable expertise and access to international crypto markets and technologies. Furthermore, Pakistan has signed a Letter of Intent with World Liberty Financial, a U.S.-based crypto company, focusing on asset tokenization, stablecoin development, and defining rules for decentralized finance. These collaborations underscore Pakistan’s ambition to become the hub for new crypto applications in South Asia.

Pakistan’s crypto ecosystem is rapidly growing, with approximately 25 million active users. The country is recognized as one of the top adopters of cryptocurrency, with nearly $300 billion worth of transactions occurring annually. This growth highlights the potential of Pakistan as a significant digital asset market and explains the government’s support for crypto technologies.

Pakistan’s government-led Bitcoin reserve signals a broader trend of countries integrating cryptocurrencies into their sovereign wealth strategies. This approach, similar to that of the U.S. and other early adopters, views Bitcoin not just as a speculative asset but as a strategic reserve to diversify national holdings. By investing heavily in crypto mining infrastructure and promising robust regulations, Pakistan is positioning itself as a major player in the blockchain field. This shift could influence other governments in the region to reconsider their crypto policies and potentially develop similar reserves or infrastructure.