Pakistan, El Salvador Strike Landmark Bitcoin-Focused Bilateral Agreement

Pakistan and El Salvador have become the unlikeliest of partners after teaming to explore public sector utilities for cryptocurrencies. At the core of the agreement is Bitcoin, with both parties keen on bolstering their BTC holdings in the coming months.

El Salvador And Pakistan Team Up For Bitcoin Partnership

Nearly five years since El Salvador elevated Bitcoin as legal tender, the South American country has gained an unlikely ally. According to a Bloomberg report, Pakistan and El Salvador have struck an economic relationship for the first time in history, in an arrangement revolving around cryptocurrencies.

Bilal Bin Saqib, chief executive of Pakistan Crypto Council, met with El Salvador’s President Nayib Bukele in San Salvador to explore a knowledge-sharing partnership. Saqib, who doubles as Minister of State Crypto and Blockchain, revealed that Pakistan is keen on learning from El Salvador’s inroads with Bitcoin.

Pakistan has begun embracing Bitcoin after years of eyeing the asset class with skepticism. Back in May, the country unveiled plans to set up a Strategic Bitcoin Reserve to accumulate the top cryptocurrency.

However, the IMF has blocked Pakistan’s plan to subsidize electricity for Bitcoin mining. The new bilateral relationship will see Pakistan attempt to mirror El Salvador’s Bitcoin accumulation strategy despite the IMF’s opposition.

Outside of Bitcoin, Pakistan is keen on establishing watertight rules for the broader cryptocurrency market. The country has set up the Pakistan Digital Asset Authority (PDAA) to serve as the main regulatory agency for its $25 billion cryptocurrency market.

El Salvador Trudges On Despite IMF Warnings

While the IMF is frowning on countries converting a portion of their reserve to Bitcoin, El Salvador is marching forward. To comply with the requirements of an IMF loan agreement, El Salvador paused BTC purchases with public sector funds while opting for novel but undisclosed ways to continue its buying spree.

At the moment, El Salvador holds 6,239 BTC valued at nearly $800 million at current prices, with notional profits exceeding $350M. Apart from steady purchases, El Salvador has mined over 400 BTC in the last three years using geothermal volcanic energy to add to its sweltering holdings.