El Salvador, Pakistan inaugurate diplomatic relations to collaborate on digital assets

Pakistan and El Salvador have established formal diplomatic relations for the first time, with a focus on collaboration in crypto and digital asset development. A key meeting occurred between a special assistant to Pakistan's prime minister on crypto and blockchain, who also heads the Pakistan Crypto Council, and El Salvador's President Nayib Bukele. The two countries plan to share expertise and cooperate on blockchain policy. Pakistan is developing a crypto agenda that includes allocating 2,000 megawatts of power for Bitcoin mining, planning a national Bitcoin reserve, and establishing the Pakistan Digital Assets Authority to regulate crypto. This partnership occurs as Pakistan operates under a $7 billion loan program with the IMF. El Salvador, which adopted Bitcoin as legal tender in 2021 and holds over 6,000 Bitcoins, is influencing Pakistan's evolving financial policy. An estimated 20 to 40 million Pakistanis are already involved with digital currencies, making this partnership a potentially strategic move for Pakistan to explore blockchain-driven economic growth.