Islamabad recently unveiled a state-backed ‘Strategic Bitcoin Reserve’ which aims to position cryptocurrency as an integral part of the country’s financial framework. 

The reserve involves keeping Bitcoin — the first decentralised cryptocurrency — in a “national wallet” and working towards digitalisation, decentralisation of finance, and attracting billions of dollars in foreign investments. 

Countries with a state-backed Bitcoin reserve enjoy manifold advantages. The reserve will allow Islamabad to diversify its wealth by holding some of its money as Bitcoin, ensuring monetary sovereignty to tackle economic uncertainties, such as those arising from conflicts with neighbouring India, the latest of which erupted last month.

With the global digital currency landscape transforming considerably and US President Donald Trump adopting a pro-crypto agenda amid renewed interest in digital assets among potential investors, Pakistan’s initiative is in sync with global dynamics. 

It has prioritised digital innovation while allocating 2,000 megawatts of electricity to support Bitcoin mining. 

The success of Pakistan’s Strategic Bitcoin Reserve, however, depends on focused interventions from the government.  

Importance of strategic Bitcoin reserve

The reserve was unveiled by the Chief Executive Officer of Pakistan Crypto Council, Bilal Saqib, in May. The council is a governmental regulatory body seeking to promote digital assets and blockchain technology. 

Its unveiling came after Saqib visited the US, where he gave a keynote address at Bitcoin Vegas 2025 in Las Vegas.  

There, he spoke about how Pakistan is creating a national “Bitcoin wallet” that holds digital assets and acts as a sovereign reserve for long-term financing.  Pakistan, he said at the conference, will champion investor protection by becoming an active member of the global crypto ecosystem, which will help the country attract billions of dollars in foreign investment. 

Evidence does suggest that countries in the developing world have benefited from initiatives such as strategic Bitcoin reserves. Bhutan is one such country.

In 2024, Bhutan’s state-backed Druk Holding and Investments held 12,206 Bitcoins valued at over US $1 billion, which enabled the Himalayan country to diversify its economic profile, become financially stable and reduce reliance on traditional industries such as agriculture.

For Pakistan, a sovereign Bitcoin reserve can translate into monetary sovereignty and economic stability, and enable the country to integrate itself into the global financial ecosystem by attracting tech companies and investments.

If successful, the reserve will enable Pakistan to hedge against inflation and reduce its dependency on global banks and international institutions. 

The decision to dedicate thousands of megawatts to bitcoin mining will pave the way for Islamabad to invest in AI research and build optimal mining efficiency.  

However, some interventions are needed to ensure Pakistan reap adequate dividends from the Bitcoin reserve. 

Corporate partnerships 

Despite a large market of freelancers and software engineers, Pakistan’s cryptocurrency infrastructure remains largely underdeveloped. Investments in mining hardware, grid infrastructure, data centres and security are estimated to cost millions of dollars.

In light of this, building corporate partnerships with companies such as Bitmain in China could be a key to success in the Bitcoin field in Pakistan. Bitmain designs application-specific integrated circuit chips for Bitcoin mining, which will enable Pakistan to cut costs by accessing established supply chains and capital investments in the form of power plants, fibre optic networks and data centres. 

Partnerships with blockchain infrastructure firms such as Blockchain Türkiye Platformu in Türkiye can help Pakistan build requisite frameworks and ecosystems for cryptocurrency transactions to flourish. At the local level, corporations such as the Pakistan Telecommunications Company Limited and K-Electric can be incentivised to generate capital. 

STEM training and sustainable energy 

An understanding of cryptocurrency requires investments in STEM (Science, Technology, Engineering and Mathematics) education. 

Many Pakistani institutions lack the facilities needed to produce graduates who could help the country derive maximum benefits from Bitcoin and blockchain technology. The academic institutions will benefit in this regard from partnerships with companies that provide training in crypto-security and crypto-basics.

This should be followed by the setting up of localities for technological innovation, such as Dubai’s Internet City, which is the UAE’s leading tech hub. Dedicated technology hubs and parks in major cities such as Karachi, Lahore and Islamabad can contribute to Pakistan’s digitalisation drive by imparting hands-on training to budding crypto experts.

Keeping energy sustainability in mind, Pakistan should prioritise green mining by focusing more on hydro and solar power to avoid putting pressure on the already stressed national grid. 

But for Pakistan to fully capitalise on its Strategic Bitcoin Reserve, it must establish clear, forward-looking regulatory frameworks. As of 2025, Bitcoin and other cryptocurrencies remain illegal in the country, a major roadblock to innovation and investment.

Legalising digital asset transactions through new legislation is the first step. This must be paired with the active participation of key institutions such as the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan to create a secure, regulated environment where crypto ventures can operate with confidence.

Effective regulation should cover anti-money laundering safeguards, tax policy, and the legal use of digital currencies, all essential to building trust and ensuring stability.

If done right, Pakistan’s embrace of Bitcoin could transform it into a regional hub for digital finance, attracting capital, talent, and technology that fuel long-term growth and global relevance.