Pakistan Mirrors US Approach, Establishing a National Bitcoin Reserve of Its Own
Pakistan is making significant strides in integrating cryptocurrency into its national financial system, with the announcement of a strategic national Bitcoin reserve and a robust regulatory framework. The move, led by the Pakistan Digital Assets Authority (PDAA), aims to leverage the opportunities offered by blockchain technology to boost economic growth and attract global investment.
The government-held Bitcoin reserve will never be sold, with the intention of using it as a long-term asset and revenue source through DeFi applications. The reserve is part of a broader effort to position Pakistan as a potential hub for energy-efficient digital infrastructure, with 2,000 megawatts of surplus electricity allocated for Bitcoin mining and AI data centers.
The PDAA, a new government agency, will oversee the regulation of exchanges, custodians, digital wallets, stablecoins, and DeFi applications. The agency's goal is to align the local market with international standards, protect consumers, and foster financial innovation. The regulatory framework, inspired by the United States, will ensure safer, more efficient, and transparent use of digital assets, in line with FATF guidelines and global standards.
The creation of the PDAA and the strategic Bitcoin reserve marks a fundamental shift from earlier crypto restrictions, reflecting Pakistan’s evolving stance on blockchain technology and digital assets. The regulatory body, the Pakistan Virtual Assets Regulatory Authority (PVARA), and the Pakistan Crypto Council will jointly oversee licensing, AML/KYC enforcement, and innovation support in the crypto sector.
The announcements have attracted international interest, with engagement from prominent figures such as MicroStrategy founder Michael Saylor and Binance’s founder Changpeng Zhao. Pakistan's initiative is expected to contribute to its rapidly growing crypto ecosystem, ranked ninth in global crypto adoption in 2024 with around 25 million active users and $300 billion in annual crypto transactions.
The strategic Bitcoin reserve and the regulatory advancements are part of a modern and ambitious vision to open the door to a technological revolution, including Bitcoin mining and the development of artificial intelligence. The move is seen as a response to international pressure, digitalization advancements, and the examples set by countries like the United States and El Salvador.
For those new to Bitcoin, a Basic Level Bitcoin Course Certificate is available, designed specifically for beginners who know nothing about Bitcoin. The announcement was made by Bilal Bin Saqib, special assistant to the prime minister on blockchain and cryptocurrencies and executive director of the Pakistan Cryptocurrency Council. Bin Saqid detailed that the declared purpose is to maintain these digital assets as a sovereign reserve, reflecting a long-term vision on the potential of decentralized finance and blockchain technology.
The strategic Bitcoin reserve will be state-backed and stored in a national wallet, under state custody. A disclaimer states that investing in crypto assets is not fully regulated and may not be suitable for retail investors due to its high volatility and risk of losing the entire investment. Despite the risks, the strategic reserve and the regulatory framework are seen as a bold step towards financial stability, technological development, and increased global crypto investment presence in Pakistan.
[1] https://www.pakistancryptocurrencycouncil.org/ [2] https://www.pdaa.gov.pk/ [3] https://www.pvara.gov.pk/ [4] https://www.binance.com/ [5] https://www.microstrategy.com/
This news article was generated by a machine learning model and may require human review and editing before publication.
[1] The strategic Bitcoin reserve, a long-term asset aimed at generating revenue through DeFi applications, is part of Pakistan's broader effort to harness the opportunities offered by blockchain technology.
[2] The newly formed Pakistan Digital Assets Authority (PDAA) will regulate exchanges, digital wallets, stablecoins, and DeFi applications, aiming to align the local market with international standards and promote financial innovation, all while ensuring transparency and safety.
