Pakistan recently announced plans to establish a Strategic Bitcoin Reserve. But, Pakistan is one of IMF programme country and recently they received $1B loan from IMF. Although, IMF has not issued a public reaction yet, its past warnings to El Salvador may cause issues when next year’s review begins second half of 2025.
Pakistan To Establish a Strategic Bitcoin Reserve
Speaking at the Bitcoin Conference, Bilal Bin Saqib unveiled Pakistan’s Bitcoin Reserve plans, marking a major turnaround from the country’s previously cautious approach to cryptocurrency. Thanking the US and President Donald Trump for the inspiration, Saqib stated,
Today is a very historic day. Today, I announce the Pakistani government is setting up its own government-led Bitcoin Strategic Reserve, and we want to thank the United States of America again because we were inspired by them.
Interestingly, the official X page of the Pakistan Crypto Council referred to the head’s critical speech and wrote, “Today, Pakistan rewrites history.”
In addition, the move gained widespread support from the global crypto industry, with prominent figures expressing their excitement. For instance, Changpeng Zhao, one of the Crypto Council advisors, conveyed his support for the key development, sharing an X post that highlighted his enthusiasm and admiration for Bilal Bin Saqib’s initiative.
As per the proposal, the government intends to launch a national Bitcoin wallet to securely hold its Bitcoin reserve. The government has also made it clear that these holdings are for holding, with no plans to sell, treating them as a long-term sovereign asset. It is noteworthy that the country has recently received $1 billion in financial aid from IMF as it approved a $1.4 billion programme for the nation.
Will IMF Object to Pakistan’s Bitcoin Reserve?
As reported by Coingape recently, IMF reached a state level agreement with another IMF programme country El Salvador. But, this agreement is subject to review by IMF executive board. The international organization has asked El Salvador not to purchase Bitcoin and also to wind up public access to Chevo wallet app.
IMF in its 2023 policy paper of crypto-asset-risks has warned against widespread sovereign adoption of crypto. The primary risk Pakistan faces is violation of the programme benchmarks due to Bitcoin price volatility.
Pakistan is getting ready to promote Bitcoin mining operations. As part of it, the country is allocating 2,000 megawatts of electricity to support the large-scale BTC mining operations and AI-powered data centres. Significantly, this strategic move is poised to modernize the power sector, drive job creation, and attract foreign investment.
Notably, Pakistan’s renewed crypto approach is set to support industrial-scale Bitcoin mining facilities and launch AI-driven data processing hubs. Additionally, it will create high-tech employment opportunities and reduce financial waste from underused energy grids.
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Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.
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