In a historic announcement at the top of Bitcoin Vegas 2025, Pakistan presented its first Bitcoin strategic reserve supported by the government, signaling a spectacular change in the approach of the country in terms of digital finance.
This decision, announced by the Minister of Crypto and Blockchain Bilal Bin Saqib, aims to establish the presence of Pakistan in the world economy of cryptography without entering speculative or commercial activities.
Instead, the reserve is considered to be a sovereign asset, much like gold or oil, to stabilize the economy in times of financial stress.
This evolution arrives in the middle of an increasing domestic involvement in digital currencies. Pakistan currently has around 20 million people associated with cryptocurrency – an unregulated space from which the government is currently winning no tax revenue. The government has also announced the 2000 MW electricity allowance to support Bitcoin infrastructure, marking a significant commitment to the sector.
Despite the excitement surrounding this digital pivot, this decision also raised critical questions.
In a special segment on Geo News’ The morning program “Geo Pakistan”, Nighat Dad, Executive Director of Digital Rights Foundation, explained what the term “Bitcoin strategic reserve” includes.
“Strategic reserves are assets that countries want to buffer during crises,” she said. “While many nations keep gold or oil, Pakistan opting for Bitcoin would be an innovative but experimental policy. Globally, only El Salvador adopted such an approach by legalizing Bitcoin in 2021 and including it in its national reserves. ”
Dad warned that this daring decision places Pakistan in an unexplored territory, in particular given its in progress negotiations with international lenders such as the International Monetary Fund (IMF) and the World Bank.
“Such stages raise concerns for global financial institutions. So, even if it could be a historical opportunity, it’s just as risky. Solid regulations and transparency are essential, as is confidence with the international community, “she added.
The Pakistan crypto user base, according to a global index of 2021, ranked 10th in the world. The digital expert pointed out that foreign freelancers and Pakistanis already enjoyed digital currencies. However, the lack of regulatory clarity has forced many users to dangerous and unregistered platforms, exposing them to fraud.
“If the government brings crypto to the regulatory fold and connects it to the banking system, it will allow freelancers to operate within the legal economy. This will not only integrate Pakistanis into the global financial system but will also create a new tax flow,” said the head of the Digital Rights Foundation. “But these advantages are only possible if the legal and regulatory framework is user -friendly and appropriate.”
Regulator, not investor
In the midst of growing interest in cryptographic space, some criticisms argue that the state should avoid direct investments and allow the private sector to lead.
On this subject, Papa has offered a firm position: “There is a world precedent-countries like the United States and the United Kingdom regulate crypto but do not invest in it.
She also warned that if public money was channeled in the crypto and the market is blocking, political and economic benefits could be serious. “The state must act as regulator and educator, not as an investor. Transparency must remain the basic background, “she said.
When asked if the young generation of Pakistan was to engage in this digital economy, Dad was optimistic but cautious.
“Crypto and blockchain are not only an investment issue-they represent a new economic border. They allow new forms of employment and digital financial freedom. But it starts with digital literacy. People have to learn what NFTs are, understand decentralized finances and familiarize themselves with digital portfolios,” she added.