Pakistan made a dramatic reversal in its cryptocurrency policy in 2025, announcing a Strategic Bitcoin Reserve and allocating 2,000 MW of surplus electricity for Bitcoin mining and AI data centers. The announcement, made by Pakistan's crypto chief Bilal Bin Saqib at the Bitcoin 2025 conference in Las Vegas, represented one of the most significant policy shifts in the global Bitcoin landscape — a country that had previously stated "crypto would never be legal" pivoting to embrace it as a strategic national asset.
Strategic Bitcoin Reserve
In May 2025, Pakistan announced the establishment of a Strategic Bitcoin Reserve:
- The reserve was seeded with digital assets already in state custody (presumably seized)
- A national Bitcoin wallet was established to hold the reserve
- Pakistan has stated it will "never sell" the Bitcoin in its reserve
- The government has described the reserve as "a sovereign reserve signaling long-term belief in decentralized finance"
- Pakistan presented its Bitcoin reserve plan to the Trump administration's crypto team at the White House
Energy Allocation for Mining
Pakistan allocated 2,000 MW of surplus electricity for Bitcoin mining and AI data centers:
- Pakistan has significant excess electricity capacity, particularly from underutilized power plants
- The allocation aims to monetize stranded energy resources
- The model mirrors Bhutan's approach of converting excess energy into Bitcoin
Virtual Assets Act 2026
The Virtual Assets Act 2026 was signed into law by President Zardari, establishing:
- The Pakistan Virtual Assets Regulatory Authority (PVARA) as the primary regulator
- A licensing framework for virtual asset service providers
- Regulatory clarity for exchanges, custody, and related services
- This legislation formalized Pakistan's dramatic policy reversal
Context
Pakistan's pivot to Bitcoin is driven by several factors:
- Desire to attract foreign investment and technology sector growth
- Need to monetize surplus electricity capacity
- Geopolitical positioning in the global crypto race
- Large, young, tech-savvy population (median age ~22)
- Significant remittance inflows ($30+ billion annually) that could benefit from crypto rails
News Timeline
| Date | Event |
|---|---|
| Pre-2025 | Pakistan officials state crypto "would never be legal" |
| May 2025 | Bilal Bin Saqib announces Strategic Bitcoin Reserve at Bitcoin 2025 (Las Vegas) |
| 2025 | 2,000 MW of electricity allocated for mining and AI data centers |
| 2025 | PM Shehbaz Sharif appoints Saqib as special assistant on crypto/blockchain |
| 2025 | Pakistan presents Bitcoin reserve plan at White House meeting |
| 2026 | Virtual Assets Act signed into law; PVARA established |
News last updated: April 2026