- Pakistan and El Salvador have formed their first official diplomatic partnership.
- The partnership is centered on Bitcoin adoption and blockchain collaboration.
- Both countries view Bitcoin as a vehicle for financial sovereignty.
Pakistan and El Salvador have launched their first formal bilateral relationship, and they’re building it around Bitcoin, which recently hit its all-time high above $120,000.
The unexpected alliance by both the countries displays growing defiance of international financial orthodoxy and their shared belief in cryptocurrency as a tool for economic transformation.
The Heart: Bilal Bin Saqib
At the heart of this crypto-centric partnership is Bilal Bin Saqib, the chief executive of the Pakistan Crypto Council and special assistant to the Prime Minister on crypto and blockchain.
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Saqib met with President Nayib Bukele in San Salvador this week to establish a joint framework for knowledge sharing and policy development around Bitcoin.
El Salvador, the first country to adopt Bitcoin as legal tender, has become a global symbol of crypto-driven governance, and now, Pakistan is taking a page from its playbook.
Saqib, in a post on X (formerly Twitter), called Bukele “a leader from the future, who saw the future first,” praising his commitment to Bitcoin “when it wasn’t cool.” He added:
“A great example that you don’t need abundant resources to put your country on the map — just vision and unwavering belief!”
The meeting resulted in a Letter of Intent between El Salvador’s Bitcoin Office and the Pakistan Crypto Council, forming a roadmap for collaboration on public sector crypto adoption, blockchain-powered financial inclusion, and policy tailored to emerging economies.
Bitcoin Reserve Strategy in Motion
In May, the country earmarked 2,000 megawatts of surplus electricity, largely from coal-fired plants to power Bitcoin mining and AI infrastructure. That move, led by the Pakistan Crypto Council and supported by the Ministry of Finance, forms part of a broader digital transformation strategy.
The country also launched the Pakistan Digital Asset Authority, a new regulatory body to oversee its fast-growing $25 billion crypto market. Reports estimate that between 15 and 20 million Pakistanis already hold digital assets.
Related: India Probes Crypto Use in Terror Financing Linked to Pakistan
Pakistan’s ambitions also include establishing a strategic Bitcoin reserve, similar to El Salvador’s approach. Bukele’s government holds over 6,240 BTC, currently worth nearly $745 million, and has mined hundreds more using geothermal energy.
El Salvador’s Bitcoin position remains in profit by over $350 million, even after a temporary pause in public-sector acquisitions to comply with IMF terms.
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