KARACHI: Pakistan and El Salvador have agreed to establish a formal channel for knowledge exchange and cooperation on Bitcoin-focused 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, formalized through a Letter of Intent signed between the Bitcoin Office of El Salvador and the Pakistan Crypto Council, will lead to technical cooperation and knowledge-sharing between the two countries.
The focus includes exploring public sector applications of Bitcoin, promoting blockchain-based financial inclusion and supporting policy innovation in emerging economies.
El Salvador, a Central American country, became the first nation to adopt Bitcoin as legal tender in 2021. Its experience is being closely watched by governments exploring the use of digital assets to expand financial access and reduce reliance on traditional monetary systems. Pakistan, for its part, is working to develop its own virtual asset economy through a structured regulatory approach.
“El Salvador’s bold Bitcoin experiment has inspired governments around the world,” Saqib said after the meeting, according to an official statement. “This visit marks the beginning of a strategic relationship rooted in innovation, inclusion and shared learning.”
The statement added the meeting was the first official engagement between a Pakistani government representative and the Salvadoran head of state.
It focused exclusively on digital asset collaboration, a move described as an example of “Biplomacy,” a term combining Bitcoin and diplomacy.
Pakistan expects the agreement to help both countries explore avenues for sovereign digital asset management and foster public-private dialogue on regulatory frameworks.
The State Bank of Pakistan said earlier this month it plans to complete a pilot project for a digital currency within the current fiscal year.
The announcement followed the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) through a presidential ordinance to regulate the country’s crypto market, curb illicit finance and promote responsible innovation.
According to financial analysts, the initiative is also expected to bring an estimated $25 billion in virtual assets into the formal tax net.
