Urooj Niazi 
pakistan & el salvador establish crypto based bilateral relations
Pakistan and El Salvador Establish Crypto-Based Bilateral Relations
In an unprecedented decision, Pakistan and El Salvador have formally established a bilateral partnership based on crypto for both nations.The bilateral initiative was announced after a meeting led by Bilal Bin Saqib, the CEO of the Pakistan Crypto Council and the Special Assistant to the Prime Minister Crypto and Blockchain. Saqib announced a bilateral agreement with El Salvador’s President Nayib Bukele to create a plan for knowledge-sharing concerning crypto and future partnerships.
El Salvador’s Aggressive Crypto Model Draws Attention in Pakistan
In 2021, El Salvador made history when it became the first nation to adopt Bitcoin as legal tender (hence the title of the article). Despite pressure from the European Union and the International Monetary Fund (IMF), El Salvador now boasts a cache of over 6200 Bitcoins, with a market value of around 745 million dollars.
Having observed these developments, Pakistan is leaping into action. Saqib reported that 15 to 20 million Pakistanis are already using crypto in their daily lives, “despite the State Bank of Pakistan’s warning and caution regarding digital assets”. Saqib added that “the government has realized there is no need for a ban; the time has come to regulate and support the digital asset industry”.
Pakistan to Establish National Bitcoin Reserve and Mining
Pakistan has reserved 2,000 megawatts for Bitcoin mining, as part of its crypto plans, and is in the process, in partnership with El Salvador, of establishing a national Bitcoin reserve.
In 2022 Pakistan established the Pakistan Digital Assets Authority to regulate crypto exchanges and blockchain, and entered into an agreement with Word Liberty Financial, a U.S. based firm associated with the Trump family, which suggests significant foreign interest in Pakistan’s crypto future.
A New Global Strategy
Pakistan’s new relationship with El Salvador is more than a technological collaboration but a strategic shift in how developing countries manage money, power, and digital sovereignty.
Both countries are currently participating in IMF programs, with both countries staking bold claims in blockchain and demonstrating to the world that digital finance no longer belongs to the West. Pakistan’s goal for launching this initiative is to become South Asia’s crypto hub that will tap into stronger international partners for future-focused economic growth.
