El Salvador Strikes Landmark Bitcoin Deal With Pakistan

Two rising countries formed an unusual friendship, and it’s all thanks to Bitcoin (BTC). El Salvador, a country that has been testing Bitcoin implementation in various fields, including mining, education & entertainment, is forming a strategic digital-asset focused partnership with Pakistan, dubbed “Biplomacy”.

Pakistan’s Bitcoin (BTC) Mining Bid Explained

Nayib Bukele, the Bitcoin-loving President of El Salvador met with Bilal bin Saqib, the Prime Minister of Pakistan, in the famed Nation Bitcoin Office Of El Salvador (ONBTC). The two have been chatting about crypto mining, as Pakistan plans to allocate 2,000 megawatts (MW) to make a name for themselves in the Bitcoin mining industry.

Back in May, Pakistan stunned the crypto sphere by forming the Pakistan Digital Assets Authority. The legal framework was followed by a letter of intent signed by the Pakistan Crypto Council, while Donald Trump’s World Liberty Financial is set to power this process with a focus on retail adoption in the country.

Intriguingly, Pakistan dodged the country’s local economy default back in 2023, and now heavily relies on the International Monetary Fund (IMF) to provide financial aid. The global finance regulator estimated that Pakistan would need $100 billion in additional funding until 2029.

What Did BTC Adoption Bring For El Salvador?

Surely, Pakistan’s Prime Minister expects to learn from El Salvador’s journey, as Bitcoin’s declaration as legal cash has helped the small Latin American country in many uncanny ways. Adding over 10,000 job vacancies, El Salvador’s brave Bitcoin (BTC) integration has nourished both international & local tourism.

With El Salvador becoming one of the safest countries in Latin America, the digital transformation had a positive social impact, even though some Bukele’s projects on Bitcoin (BTC) didn’t turn out fruitful.

To illustrate, the $30 free Bitcoin (BTC) promising Chivo crypto wallet launched in 2021 didn’t win the hearts of Salvadoreans, later getting called out by the IMF. The top-tier financial police mandated El Salvador to wind down the government-controlled crypto wallet in turn for the recent $1.4B aid agreement.

On The Flipside

• The International Monetary Fund (IMF) has been strict on El Salvador’s Bitcoin-powered digital transformation.

Why This Matters

While not allowed to subsidize electricity for Bitcoin mining, El Salvador & Pakistan have natural resources. El Salvador mined over 400 Bitcoins in three years, amplifying the Latin American nation’s sweltering BTC stash.

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People Also Ask:

What’s the El Salvador-Pakistan Bitcoin deal? El Salvador and Pakistan signed an MoU to share Bitcoin adoption strategies. Pakistan aims to build a BTC reserve, inspired by El Salvador’s model.

Why is this deal significant? It’s the first “Biplomacy” pact, uniting two nations on Bitcoin to boost financial inclusion despite IMF resistance.

What’s Pakistan gaining? Pakistan learns from El Salvador’s BTC legal tender experience to grow its $25B crypto market. Plans include 2,000 MW for mining.

How’s El Salvador benefiting? With 6,239 BTC (~$800M), El Salvador strengthens its global crypto leadership by guiding Pakistan’s “biplomatic” strategy.

What are the challenges? IMF restrictions on Pakistan’s mining energy subsidies and crypto volatility could hinder progress, so check DailyCoin for updates.

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