by 1. What Was Announced—and When
- On May 28, 2025, at the Bitcoin 2025 Conference in Las Vegas, Bilal Bin Saqib, CEO of the Pakistan Crypto Council (PCC) and Special Assistant to the Prime Minister on Blockchain & Crypto, declared that Pakistan will establish a government-led Strategic Bitcoin Reserve, inspired by the U.S. model.
- The country also allocated 2,000 MW of surplus electricity to fuel Bitcoin mining and AI/data-center operations.
2. Why It Marks a Significant Shift
- Pakistan had previously banned cryptocurrency, citing legal and regulatory concerns . This strategic reserve marks a dramatic pivot toward embracing crypto assets rather than rejecting them.
- Inspired by U.S. plans—such as filling a national Bitcoin reserve with forfeited assets—Pakistan aims to replicate that strategy, with clear intent to hold indefinitely, not trade or speculate.
3. Economic Rationale Behind the Strategy
- Surplus energy: Pakistan’s overcapacity in electricity generation is being tapped to power mining and attract tech projects.
- Inflation hedge & reserve diversification: Bitcoin may serve as protection against currency devaluation and depleted foreign reserves.
- Financial inclusion: With an estimated 15–20 million crypto users, a large unbanked population could benefit from digital asset access and remittance tools.
4. Domestic vs. International Messaging
- Internationally, the move signals openness to foreign investors—e.g., collaborations with Trump-linked groups and Binance advisory (Changpeng Zhao.
- At home, however, the State Bank and Finance Ministry reaffirm crypto remains illegal until formal legislation is passed This has created controversy and confusion domestically.
5. Risks & Criticisms
- Grid strain: Critics worry diverting 2,000 MW to mining could overwhelm the power system.
- Volatility danger: Bitcoin’s price fluctuations make it a risky reserve asset, and Pakistan faces pressure from institutions like the IMF .
- Political optics: Some view the pivot as an effort to align with U.S. political figures like Donald Trump, prompting domestic backlash and allegations of mixed messaging.
Looking Ahead: What This Could Mean
| Area | Potential Outcome |
|---|---|
| Regulation | Formation of a Digital Asset Authority and regulatory sandbox expected soon |
| Mining & Tech Growth | Saudi surplus electricity could transform Pakistan into a tech-friendly hub |
| Adoption & Inclusion | Wider access for the unbanked, freelancers, and international trade |
| Sovereign Reserves | If the reserve expands, Bitcoin might become part of Pakistan’s foreign reserves portfolio |
Final Thoughts
Pakistan’s announcement marks a dramatic turning point—from crypto prohibition to state-led crypto engagement. It reflects an intriguing mix of economic pragmatism, energy strategy, and geopolitical signaling. But real impact hinges on domestic legal reforms, regulatory clarity, and prudent risk management.
