Pakistan announces Bitcoin strategic reserve

Pakistan Unveils Strategic Bitcoin Reserve at Bitcoin 2025 Conference

On May 28, 2025, Bilal Bin Saqib, CEO of Pakistan's Crypto Council and special assistant to the Prime Minister on blockchain and cryptocurrency, announced the establishment of a government-led Bitcoin strategic reserve during the Bitcoin 2025 conference in Las Vegas. Saqib stated that Pakistan is inspired by the U.S., which initiated its own strategic Bitcoin reserve earlier this year under President Donald Trump. The Pakistani government plans to hold these Bitcoins indefinitely, with Saqib emphasizing, "We will never, ever sell them," signaling a long-term commitment to the asset.

This marks a dramatic shift from Pakistan’s earlier stance, where the State Bank of Pakistan (SBP) had banned cryptocurrencies, deeming them illegal and citing risks like anonymity fueling illicit activities. Despite this, over 20 million Pakistanis actively use digital assets, often facing high transaction fees. The new reserve will be supported by 2,000 megawatts of surplus electricity allocated for Bitcoin mining and AI data centers, a move announced earlier in May to leverage excess energy and attract foreign investment. Binance co-founder Changpeng Zhao, an adviser to the Council since April, is assisting with regulatory and infrastructure development.

Pakistan’s pivot reflects a global trend of nations adopting pro-crypto policies, spurred by the U.S. model. However, skepticism persists. The International Monetary Fund (IMF), a major lender to Pakistan, has historically cautioned against crypto adoption in countries under bailout programs, which could create policy tensions given Pakistan’s $14.3 billion foreign exchange reserves. Critics also highlight risks, noting that groups like Tehreek-e-Taliban Pakistan (TTP) have turned to crypto for fundraising, raising security concerns. While the reserve aims to bolster economic resilience and reduce reliance on the U.S. dollar, its success depends on navigating these challenges and ensuring robust regulation. The announcement has already sparked market reactions, with a 15% surge in Bitcoin transaction volume from South Asian addresses within hours.