Pakistan and El Salvador establish crypto-centered bilateral partnership: report

Pakistan and El Salvador have established a joint agreement to further advance crypto collaboration between the two countries, specifically in knowledge-sharing.

According to a recent Bloomberg article, the Head of Crypto Council and special assistant to prime minister on crypto and blockchain, Bilal bin Saqib, met with President of El Salvador Nayib Bukele in South America to discuss a knowledge-sharing partnership regarding cryptocurrency.

This is the first time an established partnership between two countries puts crypto at the forefront of a bilateral relationship. Pakistan is currently in the process of diving into the crypto industry, while El Salvador has long been regarded as a trailblazer in embracing crypto on a federal scale since as early as September 2021.

So far, El Salvador’s strategic national Bitcoin reserve has accumulated 6,238 Bitcoin (BTC), worth about $745 million at current prices. Meanwhile, Pakistan has just started plans to create a strategic Bitcoin reserve as part of a government-led initiative to embrace digital assets.

Pakistan’s IMF roadblock

However, its efforts to delve into cryptocurrency have been hindered by the International Monetary Fund. Earlier this month, the IMF declined Pakistan’s proposal to subsidize electricity for Bitcoin mining, despite earlier plans to allocate 2,000 megawatts of additional power. The IMF does not support countries involving cryptocurrency in their governance plans.

Just last year, Pakistan received a $7 billion loan from the IMF which is an ongoing agreement that lasts well into 2027.

Meanwhile, El Salvador is on the other side of its crypto ventures under the IMF. Even though the nation is already bound to a loan agreement with IMF, the nation continues purchasing Bitcoin despite further discouragement from IMF.

“There’s a commitment of President Bukele to keep accumulating assets as a way to do precisely that. Bitcoin keeps being an important project,” said Economy Minister Maria Luisa Hayem in an earlier interview back in June.

A partnership to share knowledge about Bitcoin accumulation or BTC mining advancements may prove beneficial to Pakistan as it attempts to learn from El Salvador’s strategy in establishing its own government-led Bitcoin ventures.