Pakistan and El Salvador Launch Crypto-Centric Bilateral Partnership

Pakistan and El Salvador have entered into a historic collaboration by signing a letter of intent that establishes a formal platform for cooperation on cryptocurrency initiatives. The agreement, signed in San Salvador by Pakistan’s Special Assistant on Blockchain and CEO of the Pakistan Crypto Council, Bilal Bin Saqib, and El Salvador’s President Nayib Bukele, centers around mutual knowledge-sharing and policy dialogue tailored to Bitcoin and related technologies.Under the partnership, Pakistan will leverage insights from El Salvador’s experience as the first nation to adopt Bitcoin as legal tender. Key areas for collaboration include guidance on creating sovereign Bitcoin reserves, formulating regulatory innovations, and advancing public sector adoption of blockchain solutions. Both countries are exploring cooperation on crypto education, mining operations, and digital asset frameworks.

This bilateral initiative comes at a time when Pakistan has been accelerating its crypto-led policymaking. Earlier this month, the government established the Virtual Assets Regulatory Authority (PVARA), tasked with overseeing virtual asset service providers and ensuring compliance with international standards. The Pakistan Crypto Council, led by Saqib, has also been instrumental in developing policy, securing global tech partnerships—including with Binance’s CZ—and launching a sovereign Bitcoin reserve.

El Salvador, under Bukele’s leadership, celebrated its Bitcoin journey last year and continues to expand its “Bitcoin Law” framework—featuring public wallet tools, infrastructure for remittances, and energy-driven token initiatives. Its engagements are viewed as strategic examples for emerging economies seeking technological sovereignty. For Pakistan, this agreement signals intent beyond regulation: it aligns with a broader energy strategy—using surplus electricity for mining and AI deployments—and positions the country as a rising advocate in international “biplomacy,” a term coined to describe Bitcoin-powered diplomacy.