Pakistan and El Salvador have officially strengthened their ties, opening a new page in diplomacy with a special focus on cryptocurrencies. The meeting in El Salvador between President Nayib Bukele and Bilal bin Saqib, Pakistan's special representative for blockchain, marked the beginning of a unique partnership: one country offers energy resources, while the other offers expertise in the field of cryptocurrencies.
The main topic of the talks was the exchange of experience in building digital asset infrastructure and developing a regulatory framework, as Pakistan seeks to regulate its crypto market.
Pakistan is planning a major breakthrough. The decision to allocate an impressive 2,000 megawatts of electricity specifically for mining and data centers for artificial intelligence is a serious bid for leadership in the region and, possibly, in the world of cryptocurrencies.
The government of the country, contrary to the fears of the IMF, sees this as a serious incentive to attract technological investments. According to Sakib, the goal is not only to attract miners, but also to create a favorable environment for innovative companies wishing to develop in Pakistan.
El Salvador, for its part, provides valuable experience and trust. Starting with the fact that Bitcoin was recognized as legal tender in 2021, and having accumulated an impressive 6240 BTC, the country has become a kind of testing ground for the crypto economy. Her expertise, from developing a regulatory framework to integrating digital assets into the national financial system, is crucial for Pakistan, which is just beginning its journey in this area.
Cryptocurrencies, previously associated with illegal transactions, are now becoming an instrument of economic strategy. Developing countries, bypassing outdated financial systems, are actively shaping their future. Success may lead to other developing countries, such as Nigeria and the Philippines, starting to form their own crypto unions. This will lead not only to a change in the rules of the game, but also to the creation of an alternative financial system.