Pakistan and El Salvador have signed a letter of intent (LoI) to advance cooperation on Bitcoin and digital assets, marking a significant step in blockchain diplomacy.
The agreement, formalised on July 16, 2025, in San Salvador during a meeting between Pakistan’s Minister of State for Crypto and Blockchain, Bilal Bin Saqib, and El Salvador’s President, Nayib Bukele, focuses on public-sector adoption, blockchain-based financial inclusion, and policy development for emerging economies.
Analysts dub this ‘Biplomacy’ a fusion of Bitcoin and diplomacy, highlighting decentralised technologies’ role in international relations. Saqib, also CEO of the Pakistan Crypto Council, emphasised shared learning and innovation. Bukele affirmed support for nations pursuing financial sovereignty through Bitcoin.
Just met one of the most extraordinary visionary leaders of our time, President of El Salvador, @nayibbukele
A head of state who doesn’t just talk tech, but challenges it, from AI and robotics to Bitcoin.
He’s a leader from the future, who saw the future first because when it… pic.twitter.com/QpS6vVnTxv
— Bilal bin Saqib MBE (@Bilalbinsaqib) July 16, 2025In 2021, El Salvador became the first country to adopt Bitcoin as legal tender. This move inspired Pakistan to establish the Pakistan Virtual Assets Regulatory Authority (PVARA) and develop plans for a national Bitcoin reserve. The LoI establishes a framework for bilateral collaboration in:
- Public-sector digital asset adoption
- Blockchain-driven financial inclusion
- Policy design for emerging economies
Saqib stated, “El Salvador’s bold Bitcoin experiment has inspired governments around the world. This visit marks the beginning of a strategic relationship rooted in innovation, inclusion and shared learning.” Bukele echoed this, supporting Bitcoin as a means of achieving financial independence.
Pakistan aims to learn from El Salvador’s model, which has amassed over 6,237 BTC, worth approximately $760 million —a threefold increase in value. This aligns with Pakistan’s PVARA launch in July 2025 and Bitcoin mining/reserve initiatives.
Read: Pakistan Approves Shariah Compliant Virtual Assets Act 2025 to Regulate Crypto
El Salvador pioneered Bitcoin as legal tender in 2021 to promote inclusion and growth. Pakistan seeks similar strategies to enhance its digital economy amid IMF constraints. The partnership fosters knowledge exchange, positioning both as leaders in crypto adoption for developing nations.
