Pakistan’s Bitcoin Reserve: Sovereign Asset or Speculative Gambit?

Pakistan has moved the bitcoin reserve debate from online chatter to a formal policy track, placing the idea of a sovereign crypto reserve squarely on the national agenda. 

Officials linked to the Pakistan Crypto Council outlined a plan to hold bitcoin in a national wallet, pitched as a long horizon store of value rather than a trading play. 

They also thanked the United States for inspiration, a nod to the recent public discussion around government held digital assets. 

This shift lands at a moment when Pakistan is working to attract investment, manage energy overcapacity, and diversify its financial toolkit. 

It has sparked questions that matter to everyday readers and policy watchers alike. What exactly has been announced? How would a reserve be stocked and secured? 

What are the real benefits and risks for a country with tight external balances and an ongoing program with international lenders. 

What has Pakistan actually announced about a bitcoin reserve

On May 28 to 29, 2025, during the Bitcoin 2025 event in Las Vegas, the government’s special assistant on crypto and blockchain, Bilal Bin Saqib, announced a government led Strategic Bitcoin Reserve and a national bitcoin wallet. 

Reporting in Pakistan’s mainstream press and regional outlets described the wallet as a place to hold digital assets already in state custody, with the stated intention not to sell. 

The language was deliberate and framed the reserve as a long horizon holding rather than a trading fund. At the same time, coverage in India and the Gulf carried the headline that Pakistan thanked the United States for inspiration and pledged that the assets would never be sold. 

While phrasing varied by outlet, the core claim was consistent. A national wallet would be created and the reserve would be framed as a patient store of value. 

The announcement positioned Pakistan as an early mover in South Asia on a sovereign crypto reserve policy, even as operational details were left for later.

Read Also: Pakistan’s New Crypto Regulator PVARA: What It Means for Virtual Assets 

Why now: energy, mining, and the case for a sovereign crypto reserve

The reserve plan arrived alongside a broader push to turn spare electricity into economic value. 

Pakistan has long struggled with uneven power demand and capacity payments. In April and May 2025, officials outlined an initiative to allocate up to two thousand megawatts in an initial phase for bitcoin mining and artificial intelligence data centers. 

The idea is straightforward. Where excess power exists, compute can monetize it, bring in new investment, and potentially support exports of digital services. 

The reserve narrative and the mining policy moved in tandem, and both were showcased to a global audience. 

Read Also: 11 Best Trending Cryptocurrencies in Pakistan (2025)

Supporters argue that a reserve gives the country skin in the game, aligns incentives, and might even help anchor a domestic mining and custody industry. 

Critics counter that electricity is not free, grid losses are real, and bitcoin price swings can make revenue forecasts unreliable. 

Both points can be true at once, which is why design choices around power pricing, site selection, and risk control will matter more than slogans. 

The legal path: from bans and caution to a virtual assets authority

For years, crypto activity in Pakistan sat in a gray zone, with banks warned off and consumers exposed to offshore platforms. 

That picture began to change in mid 2025. The federal cabinet approved the Pakistan Virtual Assets Ordinance and set up a new Pakistan Virtual Assets Regulatory Authority to license and supervise exchanges, custodians, and related services. 

The move is significant because a sovereign crypto reserve cannot exist in a vacuum. It needs clear rules on custody, accounting, and disclosure, plus alignment with the central bank and the securities regulator. 

The State Bank of Pakistan also signaled a parallel track by preparing a pilot for a central bank digital currency as part of wider payment modernization. In short, the legal groundwork is catching up with policy rhetoric. 

That said, the rulebook is young. Implementation details, staffing, and supervisory muscle will determine how quickly Pakistan can move from announcement to durable practice without inviting fraud or market abuse. 

Read Also: How to Buy Bitcoin on Bitrue

How would a bitcoin reserve be built and safeguarded

Public statements so far emphasize that the reserve would hold assets already under state control and that it would be framed as a long horizon holding. 

That leaves the core operational questions. How will bitcoin be acquired or consolidated. Who will provide custody, and will keys be managed with domestic infrastructure or through diversified arrangements with audited third parties. 

What transparency will be offered to citizens and to lenders who monitor reserve adequacy. Countries that have touched this space show a range of approaches, from periodic auctions to staged disclosures and independent audits. 

Pakistan’s new virtual assets authority can require segregated wallets, multi party controls, disaster recovery plans, and clear reporting lines to the finance division and the central bank. 

It can also set standards for how any mined bitcoin moves into treasury possession and how it is valued for accounting purposes. The more specific and boring these answers are, the more credible the reserve will look beyond the headlines. 

Benefits and risks for Pakistan’s economy and its external position

A well designed reserve could diversify national assets, support a domestic custody and security industry, and help anchor investment into data centers that pay for underused power. 

In a best case scenario, a credible governance model and clear risk limits could reduce the temptation to time markets and keep the focus on long horizon value.

The risks are equally real. Bitcoin can swing by double digits in short windows, which can complicate communications with citizens, ratings firms, and lenders. 

If subsidized electricity is used to power mining, the fiscal and grid costs can outrun the benefits, a point that international partners have already flagged in public reporting. 

There is also legal risk if custody and reporting are not nailed down early. Finally, if the reserve grows large without proper disclosure, volatility could spill into wider policy debates the next time prices weaken. 

All of these risks are manageable with sunlight, independent audits, and a conservative approach to growth and leverage.

Read Also: Pakistan's New Energy Plan: Will It Push Bitcoin's Adoption?

Global context: lessons from other governments

Comparisons are unavoidable. El Salvador’s experiment shows both the appeal and the constraints. 

The country ultimately softened parts of its bitcoin framework during talks with the International Monetary Fund, making private sector acceptance voluntary and keeping tax payments in dollars. 

The lesson is not that a reserve is impossible, but that transparency and fiscal discipline are non negotiable if a country wants external financing at reasonable terms. The United States provides a different kind of reference point. 

Federal agencies hold sizable amounts of bitcoin from seizures, but recent disclosures suggest the holdings under direct marshals custody are far lower than headline estimates, which fueled a public debate about where the rest resides and how it is counted. Pakistan’s takeaway is simple. 

Claims about size matter less than hard controls and clear disclosures that can be verified. Public trust grows when addresses, audits, and rules stand on their own rather than on social media narratives. 

Conclusion

Pakistan’s bitcoin reserve plan is more than an attention grab. It sits at the intersection of energy policy, financial strategy, and a wider push to formalize digital asset activity under a new regulator. Solid execution will matter far more than slogans. 

Clear rules on custody, transparent reporting, and strict limits on subsidized power can turn a bold idea into a measured policy instrument. Poorly designed incentives or vague accounting could do the opposite and invite distrust at home and abroad. Pakistan does not need to be first to be credible. 

It needs to be steady, specific, and boring in the best sense of the word. If a sovereign crypto reserve is built on those principles, it can add resilience at the margin. If not, it will read like another headline that fades when prices move the other way. 

The path chosen in the next year will show whether this is a sovereign asset in waiting or a speculative gambit with more risk than reward.

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FAQ

Is the bitcoin reserve already live?

The policy has been announced and widely reported, with officials stating the goal is to hold assets for the long run. Detailed mechanics, addresses, and audits have not yet been published. Watch the new virtual assets authority for rulemaking and disclosures. 

Will Pakistan mine bitcoin to fill the reserve?

Officials have outlined plans to allocate up to two thousand megawatts in an initial phase for mining and AI data centers. Whether mined coins flow to the treasury by rule or by separate agreements remains to be defined in regulation.

How does this square with international lenders? 

International reporting indicates skepticism toward subsidized energy for mining. Clean pricing and transparent rules are more likely to be acceptable within broader fiscal programs. El Salvador’s experience shows the premium lenders place on clarity and risk controls. 

Is Pakistan copying the United States?

Officials thanked the United States for inspiration. The United States does hold bitcoin from seizures, though recent disclosures suggest holdings under marshals custody are lower than many believed. Inspiration does not equal identical policy. 

What should investors and citizens watch next?

Look for implementing regulations from the virtual assets authority, custody standards and audits, and any disclosures on reserve size and wallet management. These will show whether the reserve becomes a durable asset or remains mostly a talking point.