Pakistan and El Salvador have formalized diplomatic relations for the first time, according to an announcement of 16 July anchoring the partnership on crypto cooperation and development of digital assets.
The pressure on a meeting in San Salvador between Bilal bin Saqib, special assistant from the Pakistani Prime Minister on Crypto and Blockchain, and the president of El Salvador, Nayib Bukele.
SAQIB also leads the Pakistan Crypto Council, who has played a key role in shaping the emerging digital asset strategy of the country.
According to a statement from the Pakistani ministerial office, the two countries agreed to share expertise and to build cooperation on blockchain policy.
This marks an important step for Pakistan, because the crypto technology embraces, despite limitations in the context of his loan program with the International Monetary Fund.
The South Asian country is currently active under an IMF facility of $ 7 billion that runs until 2027. While the country is in accordance with its obligations, the government at the same time promotes a broad crypto agenda.
This includes setting up 2,000 megawatt power for Bitcoin -my construction, planning a National Bitcoin (BTC) reserve and launching the Pakistan Digital Assets Authority in May to supervise the crypto regulations.
The visit of SAQIB also builds on a declaration of intent that was signed earlier this year between the Pakistan Crypto Council and World Liberty Financial, a company related to the Trump family, with the aim of accelerating blockchain -adoption throughout the country.
El Salvador, which hired Bitcoin in 2021 as a legal means of payment, has emerged as a global pioneer in crypto policy led by Bukele. To date, the country has collected more than 6,000 Bitcoins and the crypto treasure box is estimated at more than $ 700 million.
Despite the international research, in particular of the IMF, El Salvador continued to promote digital assets as part of its national strategy, an approach that now seems to influence the evolving financial policy of Pakistan.
Crypto remains popular in Pakistan despite the uncertainty of the regulations. Estimations suggest that between 20 million to 40 million Pakistanis or have a form of digital currency interaction with digital assets for their financial needs.
While the country is confronted with a growing tax pressure and looking for new ways for innovation and growth, his partnership with El Salvador can indicate a strategic pivot to a blockchain-driven economic future.
