Pakistan, El Salvador forge crypto ties in ‘Biplomacy’ visit

KARACHI: Pakistan and El Salvador have signed a letter of intent (LoI) to cooperate on Bitcoin-related initiatives, said a statement on Wednesday.

The agreement was formalised during a meeting in San Salvador between Minister of State for Crypto and Blockchain Bilal Bin Saqib, who also serves as the CEO of the Pakistan Crypto Council, and Salvadoran President Nayib Bukele.

The discussions focused entirely on Bitcoin and broader digital asset collaboration, a development analysts are dubbing ‘Biplomacy’ -- a blend of Bitcoin and diplomacy, which points to the increasing influence of decentralised technologies in international relations. The meeting reflects Pakistan’s growing interest in adopting strategies from the first nation to make the cryptocurrency legal tender. El Salvador became the first country in the world to adopt bitcoin as legal tender after its congress approved Bukele’s proposal to embrace the cryptocurrency in an effort to promote financial inclusion, investment and economic development.

According to several news reports, El Salvador’s national Bitcoin stash has now soared past $760 million following the latest price surge above $123,000. With more than 6,237 BTC in reserves, purchased at an average of $42,000, the country’s investment has nearly tripled in value.

The LoI signed between the two parties lays the groundwork for bilateral collaboration in crucial areas such as public-sector adoption of digital assets, blockchain-based financial inclusion and the design of policies for emerging economies.

“El Salvador’s bold Bitcoin experiment has inspired governments around the world,” Saqib said in the statement. “This visit marks the beginning of a strategic relationship rooted in innovation, inclusion and shared learning.”

Bukele welcomed the talks and affirmed El Salvador’s support for other nations exploring Bitcoin as a tool for financial sovereignty.

The diplomatic outreach comes as Pakistan moves to formalise its stance on digital assets.

The government recently established the Pakistan Virtual Assets Regulatory Authority (PVARA) and has announced plans for a strategic bitcoin reserve.