Key Takeaways:
Pakistan’s ambitious plan for a 2 GW mining initiative highlights its need for U.S. technological support, while the IMF cautions that energy subsidies might breach loan agreements. The nation’s attempt to build a Bitcoin reserve alongside a crypto ban places it in a precarious legal position. Furthermore, a $550 million investment from a firm associated with former President Trump could accelerate Pakistan’s cryptocurrency agenda, contingent upon the approval of its central bank.
Recently, Pakistan made a significant move in the realm of cryptocurrency. On June 4, the country’s crypto minister proposed a Bitcoin Reserve initiative to Trump’s advisors while initiating extensive mining operations leveraging 2,000 megawatts of surplus electricity—sufficient to power a small urban center.
This dual strategy aims to regulate Pakistan’s $25 billion shadow crypto market. However, the International Monetary Fund (IMF) noted that such a mining expansion could stress an already strained power grid. The success of this endeavor is now closely tied to securing U.S. backing.
Doubts and Interest Follow Pakistan’s Bitcoin Reserve Reveal at the White House
Crypo Minister Bilal Bin Saqib made Pakistan’s case directly in Washington during White House meetings, where he sought U.S. expertise and investments for an audacious plan to redirect 2,000 megawatts of unused electricity for Bitcoin mining and artificial intelligence data centers.
“Pakistan is establishing a solid framework for digital-asset adoption and economic modernization,” he stated to the media.
Minister of State for Crypto & Blockchain, @BilalBinSaqib, met with @BoHines47, Executive Director of @POTUS Donald Trump’s Council on Digital Assets, at the White House to discuss strategic alignment on Bitcoin, digital assets and decentralized infrastructure.
The… pic.twitter.com/tcMs3Eqo6t
— Pakistan Crypto Council (@cryptocouncilpk) June 4, 2025
The initiative encompasses more than just mining, as Saqib engaged with the White House Counsel’s Office to synchronize cryptocurrency regulations between the two nations, indicating a mutual interest in establishing harmonized rules, especially as the Trump administration focuses on “hard-money” infrastructure projects.
Nonetheless, the Pakistani government is proceeding without waiting for external endorsement. On May 21, the Finance Ministry approved the establishment of the Pakistan Digital Assets Authority (PDAA), a regulatory body that will oversee crypto exchanges, stablecoins, and token platforms.
The PDAA aims to license enterprises and enforce compliance, potentially legitimizing Pakistan’s informal crypto market, which has remained largely untapped for U.S. partnerships.
Concerns regarding this initiative persist. During debt discussions on May 31, the IMF sought clarification on the allocation of the 2 GW power for mining, voicing concerns that Pakistan’s ongoing energy shortages and financial difficulties render subsidized Bitcoin mining too perilous an undertaking.
The IMF has linked additional financial assistance to assurances that the proposed mining plan will not infringe upon existing agreements or exacerbate fiscal deficits.
Crypto Chaos: Can Pakistan Fix Its Contradictions?
In a notable development, Prime Minister Shehbaz Sharif appointed Bilal Bin Saqib, a London-educated entrepreneur, as Special Assistant to the Prime Minister on Blockchain and Crypto on May 26, granting him ministerial authority.
Saqib possesses broad powers to formulate FATF-compliant regulations, license exchanges, and guide Pakistan’s ambitious scheme to allocate surplus energy for official Bitcoin mining and AI facilities. He leads the Pakistan Crypto Council (PCC) and has enlisted Binance founder Changpeng Zhao as a consultant.
However, just days post-appointment, both the Finance Ministry and the central bank reiterated that all cryptocurrency transactions remain illegal under 2024 regulations.
Officials have cautioned that promoting cryptocurrency could expose citizens to fraud and money laundering risks, with critics suggesting that unregulated digital assets might merely replace the long-contested hawala networks in Pakistan.
BREAKING: Pakistani Finance Secretary Imdadullah Bosal confirms no legal framework exists for a #Bitcoin reserve, and crypto remains illegal in Pakistan. pic.twitter.com/TbkZa7RCPI
— MrRebel.eth (@rebelethpromos) June 2, 2025
This contradiction places Saqib in a challenging position: he is responsible for developing a National Bitcoin Strategy while existing regulations criminalize the very market he seeks to legitimize.
This dissonance has fostered a concerning perception gap. On one front, Saqib promotes Pakistan as a prospective crypto hub, even discussing a sovereign Bitcoin reserve. Conversely, existing banking restrictions block transactions, and regulators enforce punitive measures against non-compliance.
The implications are significant. Pakistan’s success in attracting digital asset investment is contingent upon addressing this divide. Will the government reinforce strict bans, or will Saqib’s team effectuate meaningful regulatory changes? The resolution of this dilemma could either establish Pakistan as a regional frontrunner in digital assets or relegate it to the periphery.
Can Pakistan Lock In Trump’s Support for Its Strategic Bitcoin Reserve?
Experts suggest that the Trump administration may lend support to Pakistan’s cryptocurrency initiatives in light of recent developments.
In April, World Liberty Financial, a firm linked to Trump, entered into a settlement with Pakistan’s Crypto Council, aiming to enhance blockchain, decentralized finance (DeFi) projects, and stablecoin systems for remittances.
JUST IN: Trump-backed World Liberty Financial (@worldlibertyfi) signs LOI with Pakistan Crypto Council (@cryptocouncilpk) to boost blockchain, DeFi, and stablecoin adoption. Pakistan set to unveil crypto legalization soon.#DigitalPakistan pic.twitter.com/9RfdFbZos6
— TechJuice (@TechJuicePk) April 26, 2025
This agreement, finalized in Islamabad, aims to test decentralized finance projects and streamline processes for remittances through asset tokenization and stablecoins. WLFI’s founders held discussions with Prime Minister Sharif and Finance Minister Muhammad Aurangzeb to initiate these projects.
WLFI brings significant financial backing, having raised $550 million and securing a $2 billion investment pledge from a supporter in the UAE.
However, the timing of this partnership raises questions about whether it was orchestrated in advance of the White House meetings. For now, all attention is focused on whether the Trump administration will formally back Pakistan’s crypto ambitions.
Frequently Asked Questions (FAQs)
How would Bitcoin mining affect Pakistan’s IMF bailout?
The IMF seeks immediate answers, saying unplanned power for mining may violate bailout terms. This could pause aid or force tougher talks.
Can Trump’s support lift Pakistan’s crypto ban?
No. The central bank still bans crypto, and only new laws can change this, even with Trump-linked deals like World Liberty Financial.
How could crypto change Pakistan’s remittance system?
Crypto may slash high transfer fees for overseas workers, but unchecked use could fuel tax avoidance. This risks Pakistan’s $30 billion remittance revenue, which is a key source of dollar stability.
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