In a landmark announcement at the Bitcoin 2025 conference in Las Vegas, Bilal Bin Saqib, head of Pakistan’s National Crypto Council, revealed the country’s decision to establish a sovereign Bitcoin reserve and a national wallet. This move signals a significant shift from the government’s earlier skepticism toward cryptocurrencies, positioning Pakistan as an emerging player in the global digital asset landscape.
The newly announced Bitcoin reserve will hold long-term, non-tradable assets, emphasizing preservation rather than speculation. Alongside this initiative, Pakistan has allocated 2,000 megawatts of surplus electricity to support Bitcoin mining and artificial intelligence (AI) data centers. These efforts are part of a broader strategy to attract international miners, blockchain firms, and technology investments.
To regulate this rapidly evolving sector, Pakistan has also established the Pakistan Digital Assets Authority (PDAA). This body will oversee digital finance, blockchain infrastructure, and tokenized assets, ensuring compliance with international standards set by the Financial Action Task Force (FATF).
Pakistan’s Sovereign Bitcoin Wallet Strategy
During his keynote address, Bilal Bin Saqib clarified that the assets in Pakistan’s sovereign Bitcoin wallet would not be traded or used for speculative purposes. “We will be holding these bitcoins and we will never, ever sell them,” he stated. This approach mirrors initiatives like the United States’ “Digital Fort Knox” proposal, which involves using seized assets to build a government-controlled Bitcoin treasury.
Pakistan is closely monitoring regulatory developments in the U.S., including stablecoin legislation such as the GENIUS Act. By adopting a long-term holding strategy, the country aims to treat Bitcoin as a sovereign asset, similar to gold or foreign currency reserves. This conservative stance is designed to provide financial stability and future-proof the national economy.
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Energy Allocation for Mining and AI Infrastructure
A critical component of Pakistan’s digital asset strategy is the allocation of 2,000 megawatts of surplus energy to support Bitcoin mining and AI data centers. This initiative aims to leverage the country’s energy resources to attract global mining operations and technology companies. By offering competitive electricity rates, Pakistan hopes to position itself as a hub for blockchain innovation and computational infrastructure.
This energy push is part of a larger effort to modernize the country’s digital economy and reduce reliance on traditional industries. The National Crypto Council, formed in February 2025, is leading these efforts by crafting crypto-friendly policies, encouraging foreign investment, and promoting blockchain adoption across various sectors.
Regulatory Framework: The Pakistan Digital Assets Authority (PDAA)
The creation of the Pakistan Digital Assets Authority (PDAA) marks a significant step toward formalizing the country’s digital asset ecosystem. The PDAA will regulate digital finance, blockchain infrastructure, and tokenized assets, ensuring alignment with FATF compliance standards. A policy framework released earlier in May outlines additional rules for anti-money laundering (AML) and digital finance operations.
This regulatory clarity is expected to foster a secure environment for investors and businesses, reducing uncertainty and promoting sustainable growth. The PDAA will also work to integrate blockchain technology into mainstream financial services, potentially expanding access for Pakistan’s large unbanked population.
Global Trends in National Bitcoin Reserves
Pakistan joins a growing list of countries that hold Bitcoin as part of their national reserves. According to recent data, over 463,000 BTC are held by various governments worldwide. The United States leads with approximately 198,000 BTC, followed closely by China with 194,000 BTC. Other notable holders include El Salvador and Bhutan, both of which have actively increased their Bitcoin investments.
Governments typically acquire Bitcoin through seizures, donations, or mining operations. El Salvador remains the only country that regularly purchases Bitcoin on the open market, while Bhutan utilizes hydroelectric power for mining. Ukraine has also received significant cryptocurrency donations to support military efforts, contrastinguishing with countries like the U.K. and Germany, which have sold portions of their holdings to meet financial obligations.
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Frequently Asked Questions
What is Pakistan’s Bitcoin reserve?
Pakistan’s Bitcoin reserve is a sovereign holding of Bitcoin intended for long-term preservation rather than trading or speculation. The assets are stored in a national wallet and will not be sold, aligning with strategies adopted by other nations.
How does Pakistan plan to regulate digital assets?
The Pakistan Digital Assets Authority (PDAA) will oversee digital finance, blockchain infrastructure, and tokenized assets. Its framework ensures compliance with international standards, focusing on security and anti-money laundering measures.
Why did Pakistan allocate 2,000MW for Bitcoin mining?
This allocation aims to leverage surplus electricity to attract global mining operations and AI data centers. By offering competitive energy rates, Pakistan hopes to become a preferred destination for blockchain and technology investments.
How does Pakistan’s strategy compare to other countries?
Unlike trading-focused approaches, Pakistan emphasizes long-term holding. This mirrors the U.S. “Digital Fort Knox” idea but contrasts with active purchasing strategies like those of El Salvador.
What role does the National Crypto Council play?
Formed in 2025, the council shapes crypto policies, attracts foreign investment, and promotes blockchain adoption. It works alongside the PDAA to create a cohesive digital asset ecosystem.
Could this initiative help Pakistan’s unbanked population?
Yes. By integrating blockchain into financial services, Pakistan aims to expand access for millions of unbanked citizens, offering new opportunities for economic participation.
Conclusion
Pakistan’s announcement of a strategic Bitcoin reserve and national wallet reflects a forward-thinking approach to digital assets. By prioritizing long-term holding, investing in mining infrastructure, and establishing clear regulations, the country is laying the groundwork for a resilient digital economy. These efforts could position Pakistan as a significant player in the global blockchain landscape while addressing domestic challenges like financial inclusion. As the world watches, Pakistan’s journey may offer valuable insights into the transformative potential of sovereign digital asset management.