Pakistan and El Salvador Start Diplomatic Ties with Focus on Crypto
Pakistan and El Salvador have officially started diplomatic relations, with a strong focus on working together in the crypto and digital asset space. This was announced on July 16, after a meeting in San Salvador between Bilal Bin Saqib, Pakistan’s crypto advisor, and El Salvador’s President Nayib Bukele.
Saqib, who also leads the Pakistan Crypto Council, has been helping to shape the country's crypto strategy. Both countries agreed to share knowledge and work together on blockchain policy.
This is a big step for Pakistan, especially as it pushes forward with crypto plans even while under a $7 billion loan program from the International Monetary Fund (IMF), which runs until 2027. While following IMF rules, Pakistan is also moving ahead with its crypto goals.
Some of Pakistan’s crypto plans include:
- Reserving 2,000 megawatts of electricity for Bitcoin mining
- Creating a national Bitcoin reserve
- Launching the Pakistan Digital Assets Authority in May to regulate crypto
Saqib’s visit follows a letter of intent earlier this year between the Pakistan Crypto Council and World Liberty Financial, a U.S. company connected to the Trump family, aimed at speeding up blockchain adoption in Pakistan.
El Salvador has led the way in crypto by making Bitcoin legal tender in 2021. The country now holds over 6,000 Bitcoins, worth more than $700 million, and continues to push for crypto despite criticism from the IMF.
In Pakistan, crypto is widely used even though regulations are still unclear. It’s estimated that 20 to 40 million Pakistanis use or own digital assets.
As Pakistan looks for new ways to grow its economy, this partnership with El Salvador could signal a shift toward using blockchain technology as part of its future financial strategy.
