Latest news with #PakistanDigitalAssetsAuthority
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
Pakistan plans bitcoin reserve but govt says crypto still banned at home
In a high-profile presentation at the Bitcoin Vegas 2025 Conference, Pakistan took the global cryptocurrency community by surprise with an announcement to establish a state-backed Strategic Bitcoin Reserve, described as a symbolic step toward long-term engagement with decentralised finance. The declaration came from Bilal Bin Saqib, recently appointed as Special Assistant to the Prime Minister on Crypto and Blockchain with the status of a Minister of State. Saqib, also serving as CEO of the newly created Pakistan Crypto Council, made the announcement after delivering a keynote address attended by influential figures including US Vice President JD Vance, Eric Trump, and Donald Trump Jr. 'We want to thank the US because we are getting inspired from them,' Saqib said, directly tying Pakistan's crypto strategy to US President Donald Trump's pro-crypto stance. Is cryptocurrency legal in Pakistan? Government says no On May 30, Finance Secretary Imdadullah Bosal clarified before the National Assembly's Standing Committee on Finance and Revenue that cryptocurrency is not recognised as legal tender, citing guidance from the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP). 'There will be a legal framework only when the government formally takes a decision,' Bosal said, confirming that existing crypto activities remain unlawful pending legislative changes. Pakistan proposes national Bitcoin wallet and crypto mining plan Saqib had revealed plans for a national bitcoin wallet to hold digital assets 'already in state custody,' framed not as speculative investments but as part of a 'sovereign reserve' to signal Pakistan's commitment to digital finance. In a bid to attract international crypto capital and technology firms, Saqib also announced the allocation of 2,000 megawatts of surplus electricity in the initiative's first phase. This power will support bitcoin mining and AI data centres, opening what Saqib described as a 'new digital frontier' to global investors, sovereign miners, and clean energy partners. 'Pakistan is no longer defined by its past. It is being reborn as a forward-looking hub of digital innovation,' Saqib said in a statement from his office. 'If you're building something real, come build it in Pakistan.' What is the Pakistan Digital Assets Authority and what will it do? Although parallel to Saqib's overseas campaign, the Pakistani government moved to create the Pakistan Digital Assets Authority (PDAA) on May 22, to regulate and formalise crypto and blockchain technologies. According to official statements, PDAA aims to develop a FATF-compliant regulatory framework, oversee virtual asset service providers (VASPs), and integrate blockchain in land records, finance, and governance systems. The Finance Division said the broader strategy was designed to monetise surplus electricity, create high-tech jobs, attract billions in foreign direct investment, and generate substantial revenue for the state. Economists warn against speculative crypto strategy and public risk While the government pitches crypto as an avenue for digital growth and foreign investment, several Pakistani economists are expressing alarm at what they view as a risky pivot toward fictitious assets. While some of these moves appear geared toward influence-building in Washington—especially with figures close to the Trump administration taking an active interest in Pakistan's crypto developments—economists argue that when crypto is positioned as a serious business proposition by the government, it becomes dangerous because the resources being put at risk are public. One concern is the speculative nature of sovereign crypto holdings. Economists noted that suggestions to invest part of Pakistan's foreign exchange reserves in crypto mirror tactics used by speculative brokers, highlighting bitcoin's historic price rises without mentioning its extreme volatility. Bitcoin mining in Pakistan: Why are electricity subsidies raising questions? The government's allocation of 2,000 MW for bitcoin mining has also sparked scrutiny. Economists question why crypto miners should receive electricity at subsidised rates per unit, far below the rate paid by households and industry, calling the move 'puzzling and opaque.' Crypto, unlike traditional assets such as money or gold, remains largely a speculative construct with limited liquidity and broader systemic risks. Experts have likened it to previous financial bubbles built on fictitious assets, from plot file scams to the collateralised debt obligations (CDOs) that precipitated the 2008 global financial crisis.
Business Recorder
3 days ago
- Business
- Business Recorder
Bitcoin Vegas in US: Pakistan unveils first govt-led Bitcoin reserve
ISLAMABAD: Minister for Crypto & Blockchain Bilal Bin Saqib on Thursday announced Strategic Bitcoin Reserve at Bitcoin Vegas 2025. In front of an elite audience that included the Vice President of the United States, JD Vance, Eric Trump, and Donald Trump Jr., Bilal Bin Saqib, Pakistan's Minister for Crypto & Blockchain and CEO of the Pakistan Crypto Council, delivered a commanding keynote at Bitcoin Vegas 2025, unveiling the country's first government-led Strategic Bitcoin Reserve and with it, a radically new vision of Pakistan on the global map. Bilal's message was bold: Pakistan is no longer defined by its past. It is being reborn as a forward-looking hub of digital innovation powered by its youth, sharpened by necessity, and led by a new generation of tech statesmen. I'm not just here as a minister, Bilal said. I'm here as the voice of a generation a generation that is online, on-chain, and unstoppable. At just 34 years old, Bilal Bin Saqib has become the leading voice of a new Pakistan one with over 40 million crypto wallets, a median age of 23, and one of the largest and most active freelancer economies in the world. While other leaders talk about potential, Bilal is unlocking it with bold national moves that put Pakistan at the centre of the global crypto conversation. In his keynote, Bilal announced the establishment of a national Bitcoin wallet, holding digital assets already in state custody not for sale or speculation, but as a sovereign reserve signalling long-term belief in decentralised finance. He also thanked President Donald Trump for his role as a peacemaker in the recent India-Pakistan conflict and for his commitment to crypto adoption. He also revealed that the Government of Pakistan has allocated 2,000 megawatts of surplus electricity in Phase 1 for Bitcoin mining and AI data centres, opening doors to sovereign miners, tech firms, and clean energy partners around the world. To harness this momentum, Bilal is also leading the creation of the Pakistan Digital Assets Authority (PDAA), a regulatory body designed to empower builders, protect investors, and formalise digital finance frameworks for the future. 'Both Pakistan and Bitcoin have suffered from bad PR.' Bilal declared. But if you look past the headlines, you'll see something else: talent, resilience, and vision. His speech was not only a historic moment for Pakistan, but a call to global builders: If you're building something real come build it in Pakistan. Come build wallets for the unbanked. Come tokenize land. Come scale your mission with our youth and our unstoppable grit. As global eyes turned to Las Vegas, Bilal Bin Saqib delivered more than a keynote. He delivered a blueprint for the future of emerging markets in Web3 one that positions Pakistan as a tech-forward, youth-powered and opportunity-rich nation ready to lead. Copyright Business Recorder, 2025
