Pakistan establishes crypto ties with El Salvador

Pakistan is exploring cryptocurrency opportunities, with the head of the Pakistan Crypto Council meeting with El Salvador's President Bukele to discuss cooperation. This comes as Pakistan operates under a $7 billion IMF program lasting until 2027. El Salvador, which previously faced IMF concerns regarding Bitcoin purchases, currently holds 6,238 Bitcoin valued at approximately $745 million. In Pakistan, an estimated 15 to 20 million people hold cryptocurrencies. The country plans to allocate 2,000 megawatts of electricity for Bitcoin mining and establish a national Bitcoin reserve. However, the IMF has expressed concerns about Pakistan offering preferential electricity rates to crypto miners, fearing it could disrupt the power market. Pakistan recently established the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee virtual asset exchanges and related services. The Pakistan Crypto Council and World Liberty Financial also signed a Letter of Intent to advance blockchain adoption. Despite avoiding a sovereign default in 2023, Pakistan anticipates needing over $100 billion in external funding by 2029.