KARACHI: Pakistan and El Salvador have taken a significant step toward cryptocurrency cooperation by agreeing to establish a formal channel for knowledge exchange and collaboration on Bitcoin-focused initiatives. The agreement was reached following a high-level meeting in San Salvador between Bilal Bin Saqib — Pakistan’s Minister of State for Crypto and Blockchain and CEO of the Pakistan Crypto Council — and Salvadoran President Nayib Bukele.
The collaboration was formalized through a Letter of Intent signed between El Salvador’s Bitcoin Office and the Pakistan Crypto Council. The pact paves the way for technical cooperation and mutual learning, especially in the areas of public-sector Bitcoin applications, blockchain-driven financial inclusion, and policy innovation in emerging economies.
El Salvador, the first country in the world to adopt Bitcoin as legal tender in 2021, has positioned itself as a global pioneer in digital assets. Its experience is being closely monitored by governments worldwide seeking to modernize their financial systems and reduce dependency on traditional monetary frameworks.
Pakistan, meanwhile, is accelerating efforts to build its own regulated virtual asset economy. “El Salvador’s bold Bitcoin experiment has inspired governments around the world,” Saqib said in an official statement. “This visit marks the beginning of a strategic relationship rooted in innovation, inclusion, and shared learning.”
According to the statement, this meeting marks the first official diplomatic engagement between a Pakistani government representative and the Salvadoran head of state. The dialogue focused exclusively on digital asset collaboration — a move being dubbed “Biplomacy,” blending Bitcoin and diplomacy.
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Pakistan hopes the partnership will help both nations explore new avenues in sovereign digital asset management and spark public-private dialogue around regulatory frameworks.
Earlier this month, the State Bank of Pakistan announced plans to pilot a central bank digital currency (CBDC) within the current fiscal year. This follows the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) via presidential ordinance — a major step aimed at regulating the crypto market, combating illicit finance, and promoting responsible innovation.
Financial experts estimate the initiative could bring up to $25 billion worth of virtual assets into the formal economy through proper taxation and oversight.