Disclaimer: This article aims to inform rather than advise. Always carry out your own research and assess risk when engaging in high velocity, speculative markets.
Pakistan is charting new territory in digital finance. Under the leadership of Bilal Bin Saqib formerly a social entrepreneur, now Special Assistant to the Prime Minister and CEO of the Pakistan Crypto Council the country is establishing a sovereign Bitcoin reserve and plans to channel it into DeFi protocols to earn yield, not to engage in speculative trading.
A Sovereign #Bitcoin Reserve Takes Shape
In May 2025, Pakistan unveiled an official Strategic Bitcoin Reserve, secured within a national wallet, with firm guidance not to liquidate holdings. Additionally, the government has earmarked 2,000 megawatts of surplus power for Bitcoin mining and AI data centres. This marks the first known instance of a state deploying digital assets in a non speculative manner
Regulating the Digital Frontier
Tightening its grip on crypto governance, Pakistan also formed the Pakistan Virtual Assets Regulatory Authority (PVARA). This independent body will licence and oversee #crypto service providers, ensuring compliance with global anti money laundering and financial action standards. This regulation finalised a broader digital asset framework first drafted in June, aligned between the Crypto Council and Ministry of Finance.
DeFi Yield: A Pragmatic Approach
Rather than pursuing quick profits, Pakistan is aiming to allocate its $BTC reserve into decentralised finance (DeFi) platforms to generate steady yield. The move aims to convert national crypto holdings into productive fiscal tools, supporting economic resilience and innovation not speculation. Michael Saylor, among other advisors, is guiding the nation in responsibly managing and leveraging these assets.
Institutional & Global Significance
Pakistan’s bold strategy marks a shift for emerging economies. By using DeFi yield rather than selling off, the country seeks to create sustainable income streams. This also enhances its diplomatic and economic outreach recently, bilateral engagements with U.S. officials, including the White House digital assets council, have emphasised Pakistan’s ambitions in crypto and financing infrastructure.
Challenges & Global Implications
The International Monetary Fund hasn’t been entirely supportive, citing concerns over resource allocation and market volatility. However, Pakistan remains undeterred, aiming to balance ambitious digital investments with energy planning and fiscal stability. This approach could serve as a pioneering model for other Global South nations keen to explore crypto as part of national strategy.
Final Thoughts
Pakistan’s comprehensive embrace of Bitcoin and its forward thinking deployment into DeFi is a watershed moment in sovereign finance. Marrying innovation with regulatory oversight, the country is striving to harness digital assets for both economic gain and global digital diplomacy. If successful, this initiative may well rewrite the playbook on how states integrate crypto into national planning.