In a surprising move, Pakistan and El Salvador signed a historic Letter of Intent (LOI) that revolves around the use of Bitcoin and cryptocurrencies. This is the first economic partnership between the two countries. Both nations are interested to learn how crypto can be used to improve various services and national reserves.
The partnership was sealed when Bilal Bin Saqib, Head of the Pakistan Crypto Council and Minister of State for Crypto and Blockchain, met El Salvador’s President Nayib Bukele in San Salvador. In relation to Bitcoin, they discussed mining and energy resources, strategic reserves, and education.
Pakistan said that it is keen to learn from El Salvador’s pioneering Bitcoin journey, especially since the latter was the first to adopt BTC as legal tender back in 2021.
After years of skepticism, Pakistan is now warming up to Bitcoin. In May, the country announced plans to build a Strategic Bitcoin Reserve. However, the IMF has raised concerns, recently blocking Pakistan’s plan to subsidize electricity for Bitcoin mining.
Nonetheless, Pakistan is not relenting, and it wants to emulate the Bitcoin accumulation plan of El Salvador. It has also started the Pakistan Digital Asset Authority (PDAA) to control its expanding $25 billion crypto market.
El Salvador, meanwhile, continues to push forward with Bitcoin, even under pressure from the IMF. The nation owns 6,239 BTC, valued at almost 800 million dollars, and has recorded more than 350 million dollars in unrealized profits. It has also mined more than 400 BTC using geothermal volcanic energy.
This partnership between Pakistan and El Salvador has the potential to change the way developing countries view Bitcoin. It demonstrates that even the most unlikely allies can come together to reform a digital financial future.
Also Read: Nayib Bukele Reveals $426M Bitcoin Profits for El Salvador
