Bitcoin reserve initiatives are gaining global momentum as Pakistan announces its government-led Strategic Bitcoin Reserve program, marking a dramatic reversal from its previous stance that cryptocurrencies would "never be legal" in the country. This significant policy shift was revealed by Bilal Bin Saqib at the Bitcoin 2025 conference in Las Vegas on May 28, 2025.

Unlike other strategic bitcoin reserve models, Pakistan's approach focuses on mining rather than purchasing cryptocurrency. Specifically, the government has allocated 2,000 megawatts of excess energy for Bitcoin mining and high-performance computing data centers. According to Saqib, the bitcoins accumulated in the national wallet will "never, ever be sold," highlighting that this strategic bitcoin reserve is intended for long-term holding rather than speculation or trading.

Furthermore, this initiative represents more than just cryptocurrency adoption—it's part of a comprehensive national digital transformation strategy. With over 100 million unbanked citizens, Pakistan aims to leverage crypto and blockchain technologies to provide these individuals with new saving and investment tools. The government expects this bitcoin reserve program to attract billions in foreign capital and create numerous high-skilled job opportunities throughout the country.

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From Ban to Embrace: Pakistan’s Crypto Policy Shift

Pakistan's journey toward embracing cryptocurrency represents one of the most dramatic policy reversals in the global digital asset landscape. Just a few years ago, the State Bank of Pakistan issued multiple warnings against cryptocurrency trading, declaring it illegal and potentially linked to money laundering and terrorist financing. Government officials repeatedly stated that digital currencies posed significant risks to the country's financial stability.

Previous stance on crypto legality

The Pakistani government maintained a strict anti-crypto position until early 2024. During this period, the central bank actively discouraged financial institutions from processing any transactions related to virtual currencies. Moreover, the Federal Investigation Agency conducted several raids on suspected crypto mining operations, seizing equipment worth millions of rupees. This hostile environment forced many Pakistani crypto enthusiasts to operate in gray markets or use foreign exchanges through VPNs.

Formation of the National Crypto Council

A pivotal shift occurred when the Ministry of Finance established the National Crypto Council (NCC) in mid-2024. This body, comprised of technology experts, economists, and regulatory officials, was tasked with developing a comprehensive framework for integrating digital assets into Pakistan's financial ecosystem. The NCC conducted extensive studies on how other nations—particularly El Salvador and the United Arab Emirates—implemented their crypto strategies.

Appointment of global advisors like CZ

To ensure world-class expertise, Pakistan recruited prominent figures from the international crypto community as advisors. Most notably, Changpeng Zhao (CZ), founder of Binance, joined as a strategic consultant alongside several other blockchain pioneers. These advisors helped design the strategic bitcoin reserve program and recommended best practices for regulatory compliance, security measures, and technical infrastructure.

The policy transformation also coincided with growing pressure from Pakistan's tech-savvy youth population, who viewed crypto restrictions as limiting their economic opportunities in the global digital economy. Additionally, the government recognized the potential for blockchain technology to address persistent issues in its financial system, including high remittance costs and limited banking access.

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The Strategic Reserve: Purpose and Principles

At the core of Pakistan's crypto strategy lies a fundamental principle: build wealth for future generations, not quick profits. The government's strategic bitcoin reserve represents a bold approach to digital asset management, with clearly defined parameters that set it apart from traditional investment initiatives.

Long-term holding, not speculation

Pakistan's national bitcoin wallet serves as a sovereign repository, not a trading vehicle. "This wallet is not for speculation or hype. We will be holding these bitcoins and we will never, ever sell them," declared Bilal Bin Saqib during his keynote address. This philosophy mirrors that of traditional sovereign wealth funds, yet applies it to digital assets. The strategy reflects a long-term belief in decentralized finance, positioning bitcoin as a permanent state asset.

National bitcoin wallet strategy

The national bitcoin wallet will primarily hold digital assets already in state custody. This approach differs significantly from countries that actively purchase cryptocurrency. Consequently, Pakistan joins the growing list of nations maintaining bitcoin reserves without requiring direct taxpayer funding. The government views this as a strategic hedge against global economic uncertainties while signaling its commitment to financial innovation.

Comparison with Texas bitcoin reserve and others

Pakistan's initiative shares similarities with other governmental bitcoin reserves, yet has distinct characteristics. Texas recently advanced Senate Bill 21 (the Texas Strategic Bitcoin Reserve and Investment Act), which establishes a state-managed reserve allowing the purchase and oversight of cryptocurrency using public funds. In contrast, the US federal reserve, established through President Trump's March 2025 executive order, utilizes approximately 200,000 bitcoins seized through law enforcement operations, requiring no new taxpayer funding.

Currently, the US holds about 198,000 BTC, with China closely behind at 194,000 BTC. Nevertheless, acquisition methods vary significantly between nations. While El Salvador regularly purchases bitcoin, Bhutan mines it using hydroelectric power. Most governments, however, obtain their holdings through seizure, donations, or mining operations—a pattern Pakistan appears to be following with its focus on mining rather than purchasing.

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Powering the Future: Energy for Bitcoin Mining

Pakistan's ambitious bitcoin reserve strategy hinges on a massive power infrastructure commitment. The government has allocated a substantial 2,000 megawatts of electricity specifically for bitcoin mining and artificial intelligence data centers in the first phase of this national initiative. This strategic decision transforms idle energy capacity into a productive digital asset.

Details of the 2,000 megawatt allocation

The allocated power primarily comes from underutilized coal-fired plants currently operating at merely 15% capacity. This repurposing represents a strategic pivot, as Finance Minister Muhammad Aurangzeb explained that this allocation "marks a pivotal moment in Pakistan's digital transformation journey," ultimately converting excess energy into innovation. The Pakistan Crypto Council (PCC), operating under the Ministry of Finance, spearheads this initiative as part of a comprehensive strategy to monetize surplus electricity.

Integration with AI data centers

The dual-purpose approach of powering both bitcoin mining and AI data centers creates synergistic benefits. Since both operations require consistent and heavy energy usage, they provide an ideal use case for Pakistan's surplus electricity. Globally, AI data center demand has soared beyond 100 gigawatts, yet supply remains constrained at approximately 15 gigawatts. This imbalance creates an extraordinary opportunity for Pakistan given its excess power capacity.

Economic and environmental considerations

Economically, redirecting idle energy allows Pakistan to transform a financial liability into a sustainable, revenue-generating opportunity. Through bitcoin mining, the government can generate foreign exchange in US dollars instead of selling power in Pakistani rupees.

Yet environmental challenges remain evident. Currently, the global Bitcoin mining network relies heavily on fossil fuels, with coal accounting for 45% of Bitcoin's energy supply mix. Looking forward, Pakistan plans to incorporate renewable energy in subsequent phases, leveraging the country's substantial wind power potential of 50,000MW in the Gharo-Keti Bandar corridor, alongside solar and hydropower resources. These green initiatives will help balance economic growth with environmental responsibility.

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Building a Digital Economy: What Comes Next

Beyond establishing a strategic bitcoin reserve, Pakistan is fast-tracking its broader digital economy transformation. The Pakistan Crypto Council (PCC) has outlined several initiatives that extend far beyond cryptocurrency adoption, creating an integrated digital ecosystem that could reshape the nation's economic future.

Tokenization of real-world assets

The PCC is actively exploring the tokenization of real-world assets like real estate and commodities. This approach has already gained traction with DAO PropTech's launch of Pakistan's first real-world asset tokenization platform at FutureFest 2025. By converting properties into smaller, affordable investment units, the platform removes traditional barriers such as high costs and lack of transparency. The system allows investors to gain fractional property rights through secure and transparent processes, simplifying real estate investment for millions previously excluded from the market.

Digital identity systems

In parallel, Pakistan has introduced the Digital Nation Pakistan Act, establishing a comprehensive national digital identity system. This initiative builds upon existing infrastructure while integrating with government databases to enable seamless interaction between departments. Most remarkably, the National Database and Registration Authority has launched "dematerialized" digital IDs that exist only in digital formats with no physical replica. These digital identities will support various applications, from e-passports and banking verification to driver licenses, effectively reaching citizens in remote areas who lack access to traditional ID systems.

Opportunities for foreign investment and job creation

The digital transformation is already showing substantial economic benefits. Google alone helped create 864,600 jobs in 2023, marking a 111% growth since 2020, with an additional 100,400 jobs supported by the Android app economy. Digital technologies are projected to contribute an additional USD 6.6 billion (PKR 1.8 trillion) in annual export value by 2030. Pakistan's youthful demographic advantage—with over 64% of its population under 30—positions the country favorably for the next wave of Web3 innovation. Currently, the IT industry generates around USD 2.60 billion in annual exports and is projected to reach USD 15 billion over the next five years. Indeed, by investing in digital infrastructure and emphasizing skill development, Pakistan aims to address persistent economic challenges through technological advancement.

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Pakistan's Strategic Bitcoin Reserve: Bold yet Conservative

Pakistan's journey from cryptocurrency prohibition to embracing Bitcoin as a national asset certainly marks one of the most significant policy reversals in global digital finance. Through its mining-focused approach, the country stands apart from nations that directly purchase cryptocurrency, instead utilizing 2,000 megawatts of surplus energy to build its reserves organically. This strategic decision transforms idle power capacity into potential long-term wealth while creating a foundation for broader economic growth.

Accordingly, the government's commitment to "never, ever sell" these bitcoins demonstrates a fundamental shift in thinking about digital assets. Rather than viewing cryptocurrency as speculative, Pakistan now considers Bitcoin a permanent state resource – similar to gold reserves but adapted for the digital age.

Beyond the strategic reserve itself, Pakistan's comprehensive digital transformation aims to address critical national challenges. Financial inclusion for over 100 million unbanked citizens remains a primary goal, alongside job creation and foreign investment attraction. The country's establishment of the National Crypto Council, featuring advisors like Binance founder CZ, shows serious commitment to building proper infrastructure and regulatory frameworks.

Subsequently, initiatives such as real-world asset tokenization and advanced digital identity systems will complement the Bitcoin reserve strategy. These programs could eventually empower millions previously excluded from traditional financial markets while modernizing government services nationwide.

With this bold move, Pakistan becomes the fourth country in the world to formally establish a National Strategic Bitcoin Reserve—joining the ranks of El Salvador, Bhutan, and Venezuela. If one includes U.S. state-level initiatives in New Hampshire and Texas, it becomes the sixth jurisdiction globally to embrace Bitcoin as a sovereign or quasi-sovereign asset.

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