Pakistan Government Introduces Bitcoin Reserves at 2025 Bitcoin Conference
Pakistan Establishes Government-Led Bitcoin Strategic Reserve
Pakistan has taken a significant step towards integrating cryptocurrency into its national economic strategy with the establishment of a government-led Bitcoin Strategic Reserve. This move, officially announced in May 2025, is part of a broader shift in the country's stance on digital assets, marking a new digital chapter for Pakistan's economy.
The announcement came at the Bitcoin 2025 Conference, with Bilal Bin Saqib, CEO of the Pakistan Crypto Council and State Minister for Crypto, emphasizing that the Bitcoins held in the reserve would be used as a strategic national asset, not for speculation or sale.
Regulatory Developments
The journey towards this strategic initiative began in May 2023, when Pakistan was firmly against the legalization of cryptocurrencies due to Anti-Money Laundering concerns and FATF compliance issues. However, the shift in Pakistan's stance can be traced back to the U.S. presidential elections in November 2024, which led to a pro-crypto shift under the Trump administration. This, in turn, influenced Pakistan to amend the State Bank of Pakistan (SBP) Act to recognize cryptocurrencies as legal tender.
In March 2025, Saqib suggested leveraging Pakistan's surplus energy for Bitcoin mining, enhancing the country's energy utilization and generating digital assets. The strategic collaboration with El Salvador, a pioneer in Bitcoin adoption, was pledged in July 2025.
Regulatory Framework
The launch of the Pakistan Virtual Assets Regulatory Authority (PVARA) in August 2025 was a significant step towards creating a comprehensive regulatory and institutional framework for digital assets oversight. Although the actual licensing and regulatory rollout were delayed until late 2025, it is projected that licensing of cryptocurrency exchanges will enable legal operations and investor protection by October 2025. Permissions for Bitcoin mining entities to operate via surplus power allocations are expected to follow shortly thereafter.
Implications and Goals
The concept of a Bitcoin Reserve is to hold Bitcoin as a strategic national asset, akin to gold or foreign currency reserves, to hedge against economic uncertainty and inflation. Pakistan's adoption of this strategy aligns with similar moves by the U.S. and others exploring Bitcoin as a recognized financial instrument in national reserves.
This new financial ecosystem is intended to attract investment and empower the youth, aiming to build a transparent, future-ready financial ecosystem in Pakistan. Senator Muhammad Aurangzeb stated that this move marks the beginning of a new digital chapter for Pakistan's economy.
It is important to note that this article is provided for informational purposes only and should not be construed as financial advice. As Pakistan continues to navigate the complex world of digital finance, it positions itself as a potential regional leader in South Asia’s regulated crypto economy, aiming to attract foreign investments, strengthen remittances, and implement FATF-compliant crypto regulations to maintain global financial credibility.
[1] The News International. (2025). Pakistan to create Bitcoin Strategic Reserve. Retrieved from https://www.thenews.com.pk/latest/1406157-pakistan-to-create-bitcoin-strategic-reserve [2] Dawn. (2025). Pakistan to legalize cryptocurrency trading by October 2025. Retrieved from https://dawn.com/news/1604230/pakistan-to-legalize-cryptocurrency-trading-by-october-2025 [3] The Express Tribune. (2025). Pakistan to establish Bitcoin Strategic Reserve: Bilal Bin Saqib. Retrieved from https://tribune.com.pk/story/2382679/pakistan-to-establish-bitcoin-strategic-reserve-bilal-bin-saqib [4] The Economic Times. (2025). Pakistan to amend central bank law to recognize cryptocurrencies as legal tender. Retrieved from https://economictimes.com/news/international/world-news/pakistan-to-amend-central-bank-law-to-recognize-cryptocurrencies-as-legal-tender/articleshow/91566000.cms [5] CoinDesk. (2025). Pakistan to create Bitcoin Strategic Reserve, join growing list of countries exploring digital gold. Retrieved from https://www.coindesk.com/pakistan-to-create-bitcoin-strategic-reserve-join-growing-list-of-countries-exploring-digital-gold
- As the government-led Bitcoin Strategic Reserve in Pakistan grows, it is anticipated that businesses and financial institutions may start incorporating blockchain technology to tap into the emerging digital assets market, further reinforcing technology's role in Pakistan's business landscape.
- With the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) and the impending legalization of cryptocurrency exchanges, the finance sector is poised to embrace various innovative applications of technology in the realm of digital assets, consequently reshaping the magazine articles and discussions about Pakistan's economy in the future.
