Pakistan has recently made headlines by unveiling plans to establish a Strategic Bitcoin Reserve (SBR) and commit to not selling the holdings. This announcement was made by Bilal bin Saqib, the CEO of the Pakistani Crypto Council (PCC) and Special Assistant to the Prime Minister (SAPM) on blockchain and crypto, during the Bitcoin Conference in Las Vegas.
The decision to set up a government-led Bitcoin strategic reserve is a significant move for Pakistan. Saqib emphasized that the national BTC wallet is not intended for speculation or hype, but rather to hold the BTCs indefinitely without selling them.
The inspiration for Pakistan’s SBR can be traced back to President Donald Trump’s administration, which had pledged to establish a strategic BTC reserve. Although the promise was not fulfilled, it sparked interest among other nations, including Pakistan. This move reflects Pakistan’s growing interest in crypto and financial innovation.
In addition to the SBR initiative, Pakistan is actively working towards creating a legal framework to drive crypto adoption and investment. This includes partnerships with key industry players such as Binance founder CZ and Trump-backed World Liberty Financials (WLFI).
The recent collaboration between PCC and WLFI aims to promote crypto adoption and explore blockchain-related experiments in areas such as tokenization and remittances. Saqib highlighted that this partnership is a strategic move to empower Pakistan’s young population and integrate the country into the future of global finance.
Pakistan’s crypto engagement has been further boosted by the country’s approximately 40 million crypto users and its growing talent pool. Chainalysis’ 2024 crypto adoption report ranked Pakistan among the top ten countries due to increased usage of centralized exchanges.
If implemented, Pakistan’s SBR would place the country among a select group of nations, including El Salvador, the Kingdom of Bhutan, the U.S., and China, that hold BTC reserves. Currently, only eight countries collectively hold BTC worth over $57 billion, according to BitBo data.
The growing trend of nation-state and institutional adoption of BTC is seen as a major catalyst for the cryptocurrency’s long-term upside. At the time of writing, BTC is trading at $108K, showing a 14% increase in the past thirty days and a 40% rise from the April low.
In conclusion, Pakistan’s decision to establish a Strategic Bitcoin Reserve and its proactive approach towards crypto adoption demonstrate the country’s commitment to embracing digital assets and financial innovation. This move aligns with global trends and positions Pakistan as a key player in the evolving landscape of cryptocurrency and blockchain technology.