Pakistan’s relationship with Bitcoin has been characterized by inconsistency and confusion in the last few years. Originally, the country banned direct Bitcoin trade in 2018 with reference to concern over fraud, money laundering and lack of regulation. However, their attitude began to soften and the regulators began to explore the technology behind Bitcoin with courts that even question the legality of the ban. Eventually, citizens were allowed to keep Bitcoin, although trade remained cloudy and unregulated. This back and forth approach has created a confusing environment where Bitcoin exists in a legal gray area. It is technically allowed, but still not fully embraced or regulated, reflecting the state’s struggle to balance innovation with control.
This confused relationship with Bitcoin seems to have turned a corner in recent weeks when Bilal Bin Saqib, head of Pakistan Crypto Council, at the Bitcoin 2025 conference in Las Vegas announced that the country is moving to establish a strategic Bitcoin reserve. In addition, he announced the award of 2,000 megawatt excess energy to Bitcoin mining and high performance computer data centers. The Ministry of Finance has also ordered the creation of a whole new agency to oversee digital asset regulation, which can lead to a less opaque legal framework around Bitcoin ownership and use in everyday transactions.
Critics have claimed that this is only an attempt from Pakistan to enjoy himself up to Trump in the wake of the recent three -wing with India. After all, to all Saqib did State that Pakistan was inspired by the Trump administration as he spoke at the recent Las Vegas Bitcoin conference. Others have claimed that Pakistan is simply seeking to build opposition to possible sanctions in the future over its support for terrorist groups. I think such a geopolitically focused criticism overlooks a deeper economic reality that has stared Pakistan in the face for many years.
I wrote an article for a Pakistani newspaper about a year ago, arguing that the country is unique in financial terms to take advantage of Bitcoin and lock the benefits that come with adoption. Pakistan suffers from violent inflation, stagnant capital formation, depleted foreign reserves, an inefficient bureaucracy and an excessive transfer of transfers from abroad. These systemic issues have eroded citizens’ beliefs in traditional financial systems, leaving many Pakistanis disillusioned and seeking alternative means to protect their wealth and economic autonomy.
Thus, the care of a culture for Bitcoin adoption could go far towards relieving much of these economic illnesses and strengthening citizens to take control of their economic future. By serving and trading with a form of misalignment that is deflationary, Pakistanis can protect themselves from the disadvantages of the macroeconomic trends that have decimated the standard of living for this once proud nation. Bitcoin adoption could transform the country’s lively transfer sector with recipients holding more of the money they are sent. It can also free people from the ineffective banking system that is such a drainage of the people. Permissions -free transactions can also strengthen the baked minorities that often struggle to achieve financial freedom.
The announcement of a strategic Bitcoin reserve as well as promises to introduce pro-bitcoin regulation and a mining strategy is step in the right direction. They show that the mood is changing and the country begins to look seriously at the only real digital currency in the city. These steps also point to a much wider, global shift in attitudes to Bitcoin – especially in nations where hyperinflation is a daily reality and the banking system is struggling to meet the needs of citizens.
However, real change will only come when Pakistan fully legalizes Bitcoin as a digital currency and takes steps towards mass recording. Only so General Pakistani citizens will be free to trade with people from all over the world without the need to trust the local banking system. Only so Economic autonomy will become an achievable target for those who live far away from the big cities where banks are based. Only so Women will be free to serve, store and act in a digital currency that is resistant to cultural barriers.
Creating a national strategic reserve simply signalizes that a nation believes in Bitcoin as an asset with the potential to offer a reliable return. It does not signal that a nation has adopted the digital currency as a means of overcoming the obstacles imposed by Fiat. Strategic national reserves also hammer bitcoin and bring it too close to the state, even though the digital currency was designed to be a hedge against State -controlled money. As such, a reserve does not lock the true potential of Bitcoin to act as a buffer against domestic inflation, currency indignation and a cumbersome banking system.
A strategic Bitcoin reserve is a step in the right direction of Pakistan as it would be for any nation suffering from hyperinflation. But only mass recording will really unlock the huge potential Bitcoin can offer a nation like Pakistan, and we have a long way to go before it becomes a reality.
In my opinion, strategic reserves are not what Bitcoin is all about, but let’s hope that this is only the first step in a long and prosperous journey towards Orange-popping a nation.