Pakistan and El Salvador have announced a cooperation in cryptocurrency, initiated by a meeting between the CEO of the Pakistan Crypto Council and the President of El Salvador. Both nations are looking to develop the Bitcoin sector.
Collaboration in Cryptocurrency
Pakistan and El Salvador have started joint efforts for cryptocurrency cooperation, reflecting the growing influence of Bitcoin in international politics. El Salvador's President Nayib Bukele and Pakistan Crypto Council CEO Bilal Bin Saqib discussed ways for closer collaboration in this sector.
Pakistan's Bitcoin Mining Plans
Pakistan plans to allocate 2,000 megawatts of electricity for Bitcoin mining and create a national reserve. However, these plans require approval from the International Monetary Fund (IMF), with which Pakistan already has a $7 billion funding program running through 2027.
Regulatory Obstacles and Challenges
The International Monetary Fund has expressed concerns about potential market distortions that could arise if cryptocurrency miners receive subsidized electricity. According to Saqib, there are already 15-20 million people in Pakistan holding cryptocurrencies, highlighting the growing interest in this sector.
The collaboration between Pakistan and El Salvador in cryptocurrency demonstrates how countries can unite efforts towards innovation and the development of digital assets, despite existing economic and regulatory obstacles.
