Pakistan and El Salvador have signed a special agreement aimed at deepening collaboration in cryptocurrency, specifically in knowledge sharing.
Collaboration Agreement
The Head of Crypto Council and special assistant to the Prime Minister on crypto and blockchain, Bilal bin Saqib, signed an agreement with El Salvador's President Nayib Bukele in South America. The agreement focuses on collaboration in knowledge sharing regarding cryptocurrency.
Crypto Strategies of Both Countries
El Salvador has long been viewed as a pioneer in embracing cryptocurrency at the federal level, having adopted Bitcoin in September 2021. As of now, El Salvador’s strategic Bitcoin reserve has accumulated 6,238 BTC, approximately valued at $745 million. Meanwhile, Pakistan is just beginning to develop its own Bitcoin reserve strategy as part of a government initiative.
Pakistan's IMF Roadblock
However, Pakistan's efforts to delve into cryptocurrency have faced challenges from the International Monetary Fund (IMF). Earlier this month, the IMF declined Pakistan's proposal to subsidize electricity for Bitcoin mining, despite plans to allocate 2,000 megawatts of additional power. This is the second action from the IMF following Pakistan's $7 billion loan, which remains in effect until 2027.
The signing of the agreement between Pakistan and El Salvador may greatly assist Pakistan in learning successful strategies from El Salvador in the cryptocurrency sector, despite existing restrictions imposed by international financial organizations.
