Key points
- Agreement signed to promote blockchain use in public sector
- El Salvador first nation to adopt Bitcoin as legal tender
- Initiative aims to bring $25b into formal tax system
ISLAMABAD: Pakistan and El Salvador have agreed to establish a formal channel for knowledge exchange and collaboration on Bitcoin-related initiatives, following a meeting between Bilal Bin Saqib, Minister of State for Crypto and Blockchain and CEO of the Pakistan Crypto Council, and Salvadoran President Nayib Bukele in San Salvador.
The agreement, cemented through a Letter of Intent signed between El Salvador’s Bitcoin Office and the Pakistan Crypto Council, will facilitate technical cooperation and the sharing of expertise between the two nations, according to Arab News.
It was an honor to interview @Bilalbinsaqib, Pakistan’s Minister of Crypto & Blockchain 🇵🇰
🗣️ “Pakistan and El Salvador are creating legacy. Not through traditional diplomacy — but through Bitcoin. This is the birth of a new era: biplomacy”
Check it out: https://t.co/NfUgSZ8VMa pic.twitter.com/15npF7DEKA
— Kevin Rivera (@kealrive22) July 17, 2025
The focus will be on exploring public sector applications of Bitcoin, promoting blockchain-based financial inclusion, and supporting policy innovation within emerging economies.
Using digital assets
El Salvador, a Central American nation, became the first country to adopt Bitcoin as legal tender in 2021. Its experience is closely observed by governments worldwide seeking to use digital assets to broaden financial access and reduce dependency on traditional monetary systems. Pakistan, meanwhile, is working to develop its own virtual asset economy through a well-structured regulatory framework, according to MEXC.
Read Bloomberg @crypto‘s article on how crypto is helping Pakistan and El Salvador establish bilateral ties: https://t.co/AGNrPGvdyp pic.twitter.com/JabFpDsiBx
— Pakistan Crypto Council (@cryptocouncilpk) July 17, 2025
“El Salvador’s bold Bitcoin experiment has inspired governments globally,” Saqib said following the meeting, according to an official statement. “This visit marks the start of a strategic partnership grounded in innovation, inclusion, and shared learning.”
🇸🇻🤝🏼🇵🇰 https://t.co/2hnBi3pIpg
— Nayib Bukele (@nayibbukele) July 16, 2025
The statement also noted that the meeting was the first official engagement between a Pakistani government representative and the Salvadoran head of state, reports Bloomberg.
Digital asset collaboration
It focused solely on digital asset collaboration, a move described as an example of “Biplomacy,” a blend of Bitcoin and diplomacy.
Pakistan anticipates that the agreement will help both countries explore sovereign digital asset management and encourage public-private dialogue on regulatory frameworks.
¡Gracias, El Salvador! 🇸🇻🤝🇵🇰 https://t.co/xbx84DMzhb pic.twitter.com/JxUwIniPf2
— Pakistan Crypto Council (@cryptocouncilpk) July 17, 2025
Earlier this month, the State Bank of Pakistan announced plans to complete a pilot project for a digital currency within the current fiscal year.
This followed the creation of the Pakistan Virtual Assets Regulatory Authority (PVARA) through a presidential ordinance to regulate the nation’s crypto market, combat illicit finance, and foster responsible innovation.
Financial analysts estimate that the initiative could bring approximately $25 billion in virtual assets into the formal tax system.
