Pakistan and El Salvador have signed a Letter of Intent (LOI) to collaborate on Bitcoin strategy and cryptocurrency innovation, marking the first economic partnership between the two nations.
The agreement was reached during a visit by Bilal Bin Saqib, Pakistan’s Minister of State for Crypto and Blockchain and head of the Pakistan Crypto Council, who met with President Nayib Bukele in San Salvador. The discussions covered a wide range of topics, including Bitcoin mining, energy integration, strategic reserves, and blockchain education.
El Salvador was the first country in the world to adopt Bitcoin as legal tender back in 2021, and it has since built a Bitcoin treasury of 6,239 BTC, valued at nearly $800 million, including $350 million in unrealised profit. The country has even started volcanic-powered Bitcoin mining, adding over 400 BTC through geothermal energy sources.
Pakistan, once sceptical of Bitcoin, is now shifting toward embracing digital assets. In May 2025, the country unveiled plans to build a Strategic Bitcoin Reserve, though the IMF blocked a related proposal to subsidise electricity for mining. Still, Pakistan is pushing forward, modelling its approach after El Salvador.
Pakistan has also launched the Pakistan Digital Asset Authority (PDAA) to oversee and regulate its $25 billion crypto market, aiming to create a legal framework that encourages innovation while protecting investors.
The partnership with El Salvador could help Pakistan accelerate its learning curve, improve regulatory readiness, and explore ways to use Bitcoin in reserves, payments, and energy sectors.
This unexpected alliance signals a broader trend: developing countries are increasingly exploring Bitcoin as a sovereign financial tool—one that could provide economic independence and long-term value amid global uncertainty.
As El Salvador continues to defy the IMF’s scepticism and Pakistan looks for crypto-powered solutions to economic challenges, this partnership could shape how emerging economies approach Bitcoin in the years to come.
