Partnership to Enhance Economic Strategies: Pakistan Collaborates with El Salvador on Bitcoin Reserves
news
2 min read 
Pakistan has officially partnered with El Salvador to bolster its Bitcoin reserves, marking a groundbreaking moment for the cryptocurrency industry. This unprecedented collaboration aims to strengthen Pakistan’s economic strategy by leveraging expertise from El Salvador, which has been at the forefront of Bitcoin adoption.
In May, Pakistan announced plans to establish a Strategic Bitcoin Reserve, intending to accumulate the cryptocurrency. However, the International Monetary Fund (IMF) obstructed the country’s initiative to subsidize electricity for Bitcoin mining, a vital component of this plan. To overcome these hurdles, Pakistan has turned to El Salvador for guidance on building its Bitcoin reserves effectively.
The Pakistani government has dispatched Bilal Bin Saqib, CEO of the Pakistan Crypto Council, to meet with El Salvador’s President Nayib Bukele in San Salvador to explore potential collaboration opportunities. Saqib emphasized that Pakistan is eager to learn from El Salvador’s Bitcoin strategies and implement similar measures.
El Salvador’s Commitment to Bitcoin Investments
Meanwhile, El Salvador continues to expand its Bitcoin holdings despite facing pressure from the IMF regarding Bitcoin purchases made with public funds. The country has amassed an impressive 6,239 BTC, valued at nearly $800 million, accompanied by notional profits exceeding $350 million. Notably, El Salvador utilizes geothermal energy to mine Bitcoin, resulting in a remarkable increase of over 400 new coins added within the past three years.
Pakistan’s New Regulatory Framework
The partnership with El Salvador is also expected to contribute significantly to Pakistan’s regulatory landscape. The country has established the Pakistan Digital Asset Authority (PDAA), which will oversee its substantial $25 billion digital asset sector. This new regulatory body will play a crucial role in ensuring the safe growth of cryptocurrency in Pakistan.
Pakistan’s association with El Salvador highlights the growing momentum behind Bitcoin and cryptocurrency adoption worldwide.
Source: coincentral.com
