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 <li>Pakistan and El Salvador have formed a crypto alliance focused on Bitcoin policy and blockchain cooperation.</li>
 <li>Pakistan plans to build a Bitcoin reserve and expand mining despite IMF restrictions on subsidized electricity.</li>
 <li>El Salvador continues to grow its Bitcoin holdings while Pakistan sets up a digital asset authority for regulation.</li>
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<p>Pakistan and El Salvador have <a href="https://www.bloomberg.com/news/articles/2025-07-16/pakistan-el-salvador-establish-bilateral-ties-based-on-crypto" rel="noopener noreferrer nofollow">formalized</a> diplomatic ties for the first time, centered around cryptocurrency collaboration. This move comes as Pakistan steps deeper into digital assets despite its ongoing financial program with the International Monetary Fund. The new partnership focuses on policy exchange and knowledge sharing in blockchain and cryptocurrency regulation.</p>
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<p>The agreement follows a meeting in San Salvador between Bilal Bin Saqib, Pakistan’s special assistant on crypto and blockchain, and President Nayib Bukele. Saqib also leads the Pakistan Crypto Council, which has driven much of Pakistan’s digital asset development in recent months.&nbsp;</p>
<p>El Salvador, known for its Bitcoin-first policy, is now offering Pakistan a blueprint for integrating crypto into national strategy.</p>
<h2 class="wp-block-heading" id="strong-bitcoin-at-the-heart-of-pakistan-s-evolving-strategy-strong"><strong>Bitcoin at the Heart of Pakistan’s Evolving Strategy</strong></h2>
<p>Pakistan is adopting a bold approach to digital assets after years of hesitation. The country plans to mirror El Salvador’s Bitcoin accumulation model. In May, Pakistan announced it would <a href="https://cryptonewsland.com/pakistan-announces-strategic-bitcoin-reserve-an/" rel="noopener noreferrer nofollow">set up a national Bitcoin reserve</a>. The initiative includes allocating 2,000 megawatts of energy for mining operations.</p>
<p>However, the IMF has restricted Pakistan from using subsidized electricity for mining. Despite this, Pakistan continues to push forward. Its crypto ambitions remain in place, even under the limitations of a <a href="https://cryptonewsland.com/imf-makes-fruitless-efforts/" rel="noopener noreferrer nofollow">$7 billion IMF loan</a> agreement. The new alliance with El Salvador may offer alternative routes for growth and innovation outside IMF constraints.</p>
<h2 class="wp-block-heading" id="strong-el-salvador-maintains-course-despite-imf-pressure-strong"><strong>El Salvador Maintains Course Despite IMF Pressure</strong></h2>
<p>El Salvador remains committed to its crypto-centric policies. Since adopting Bitcoin as legal tender in 2021, the country has amassed 6,239 BTC. These holdings are now worth over $800 million. Some of the Bitcoin has been mined using geothermal power from volcanoes, a strategy unique to the region.</p>
<p>Despite criticism from global financial institutions, El Salvador continues to buy and store Bitcoin. Although public funds for Bitcoin purchases have paused under IMF pressure, alternative methods of acquisition remain active. These efforts highlight the country’s determination to advance its digital asset agenda.</p>
<h2 class="wp-block-heading" id="strong-pakistan-sets-up-digital-asset-authority-amid-rising-adoption-strong"><strong>Pakistan Sets Up Digital Asset Authority Amid Rising Adoption</strong></h2>
<p>To regulate its growing crypto market, <a href="https://cryptonewsland.com/pakistan-establishes-crypto-council-to-regulate-blockchain-and-digital-assets/" rel="noopener noreferrer nofollow">Pakistan launched</a> the Pakistan Digital Assets Authority in May. This body will oversee digital asset activity in a market estimated at $25 billion. Around 20 to 40 million Pakistanis are estimated to own or use digital assets.</p>
<p>The partnership with El Salvador marks a significant pivot for Pakistan’s economic strategy. With regulatory frameworks taking shape, the country seeks to explore innovation while balancing global financial obligations. Crypto continues to gain traction in Pakistan, and this diplomatic step could open new pathways for blockchain development.</p>

El Salvador and Pakistan Sign Crypto Agreement to Advance Blockchain Policy and Mining Plans

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