Pakistan, which has recently shown great interest in cryptocurrencies, and El Salvador, which has positioned itself as a pro-cryptocurrency nation, have agreed to strengthen cooperation related to cryptocurrencies.
According to Bloomberg and other sources on July 16 (local time), Bilal Bin Saqib, chairman of the Pakistan Cryptocurrency Council and special adviser to the Pakistani prime minister, met with President Nayib Bukele in El Salvador the previous day. In an official statement, the Pakistani government announced that the two countries would enhance cooperation by sharing expertise related to digital assets, including cryptocurrencies.
This move comes as enthusiasm for cryptocurrencies has recently begun to surge in Pakistan.
However, Pakistan is currently receiving loans from the International Monetary Fund (IMF), which imposes restrictions such as compliance with IMF conditions regarding participation in the cryptocurrency market. Having narrowly avoided a national default in 2023, Pakistan agreed last year to receive a $7 billion (about 9.7 trillion won) loan from the IMF. The loan program will continue until 2027.
With a population of approximately 250 million, making it the fifth most populous country in the world, it is estimated that between 15 million and 20 million people in Pakistan own cryptocurrencies. The Pakistani government has allocated 2,000 megawatts (MW) of electricity for Bitcoin mining and is also planning to establish a national Bitcoin reserve. According to Bloomberg, these measures appear to have been influenced by the executive order promoting cryptocurrencies issued by U.S. President Donald Trump immediately after he took office in January.
El Salvador is also expanding its cryptocurrency activities while receiving IMF loans. The IMF was initially reported to have a somewhat pessimistic view of President Bukele's government's cryptocurrency-related initiatives. In April, the Bukele administration stated that it was still purchasing Bitcoin, even after signing a loan agreement with the IMF that included a condition to halt cryptocurrency purchases.
El Salvador currently holds Bitcoin valued at $745 million. Since September 2021, President Bukele has been working to make his country a global hub for cryptocurrencies, including by introducing Bitcoin as legal tender for the first time in the world.
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