Pakistan is planning to establish a strategic Bitcoin reserve, which could alter the dynamics of the country's crypto market.
Announcement of the Strategic Reserve
At the Bitcoin 2025 Conference in Las Vegas, Bilal bin Saqib, President of the Pakistan Cryptocurrency Council, announced the government's plan to create a 'Strategic Bitcoin Reserve.' The Bitcoins collected in this reserve will not be sold and will be held indefinitely, emphasizing a long-term commitment to this initiative.
Context and Historical Background
Two years ago, Pakistan's Finance Ministry deemed cryptocurrency illegal, but global acceptance has significantly softened their stance. Ministry sources report that a comprehensive draft bill on cryptocurrency will be included in the June budget. This indicates a shift from a prohibitive to a regulatory approach, helping Pakistan stand out in regional competition.
The Future of Pakistan's Crypto Ecosystem
The government supports the Bitcoin reserve initiative with a broader plan for creating a crypto ecosystem. A memorandum of understanding was signed with World Liberty Financial on collaborative efforts for asset tokenization, cryptocurrency-backed stablecoins, and regulatory protocols. Additionally, plans are in place to allocate 2,000 MW for mining and AI infrastructure projects, providing low-cost electricity for the sector.
Pakistan is gearing towards developing a crypto economy through the establishment of a state-backed Bitcoin reserve, aiming to formalize potential and attract capital despite geopolitical pressures.
