Pakistan, El Salvador sign partnership on Bitcoin and digital assets

Pakistan and El Salvador have signed a letter of intent (LoI) to collaborate on initiatives involving Bitcoin and digital assets. 

The agreement was finalised during a meeting in San Salvador between Bilal Bin Saqib, Minister of State for Crypto and Blockchain, and Salvadoran President Nayib Bukele. 

Saqib, also the CEO of the Pakistan Crypto Council, led discussions centered on Bitcoin and broader digital asset collaboration.

This development is being referred to as ‘Biplomacy,’ a blend of Bitcoin and diplomacy, reflecting the growing role of decentralized technologies in global relations. 

The agreement signals Pakistan’s interest in adopting strategies from El Salvador, which became the first country to make Bitcoin legal tender. 

El Salvador’s initiative, which aims to promote financial inclusion, investment, and economic growth, has seen success, with the country’s Bitcoin reserves surpassing $760 million, nearly tripling in value after the recent price surge.

The signed LoI outlines plans for bilateral collaboration in areas such as public-sector adoption of digital assets, blockchain-based financial inclusion, and the creation of policies for emerging economies. 

Saqib expressed that El Salvador’s bold experiment with Bitcoin has inspired nations worldwide, emphasizing the shared vision of innovation and inclusion.

In response, Bukele welcomed the partnership and reiterated El Salvador’s support for countries exploring Bitcoin as a tool for financial sovereignty. 

This agreement comes at a time when Pakistan is taking steps to formalize its position on digital assets, including the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) and plans for a strategic Bitcoin reserve.