New Digital Cold War and Global Strategy: Pakistan’s Advance, India’s Unease
By: Raja Zahid Akhtar Khanzada
When nations begin to write code instead of building weapons, and when blockchain borders become more significant than geographical ones, then know that the world has entered a new era an era where power no longer resides solely at the tip of a gun, but lies hidden deep within digital wallets, blockchain servers, and crypto reserves.
Such a moment recently emerged when Pakistan announced the establishment of a Bitcoin Strategic Reserve.
This announcement, which appears on the surface to be a financial and technological advance, is in fact a disruptive step within global politics, the balance of power, and the South Asian narrative.
Pakistan’s announcement regarding the creation of a “Bitcoin Strategic Reserve” not only startled domestic financial and technical circles but also triggered unrest in India.
While the world remains divided in its opinions regarding the future of cryptocurrency, Pakistan has boldly paved a new path toward economic sovereignty and global technological standing.
In the gathering of blockchain, Pakistan’s advancing steps—and the reaction this announcement received in India are not merely expressions of surprise but have taken the shape of deep concern.
Indian analysts have openly warned the Modi government:
“Pakistan is forging a new closeness with the United States through crypto, and this alliance could challenge India’s dominance in South Asia.”
This narrative shows that India, which considers itself the digital leader of the region, is troubled by Pakistan’s crypto diplomacy.
Pakistan is now preparing to play a role not only on physical borders but also on the digital horizon—as something akin to a digital deep state.
When Pakistan announced the establishment of the Bitcoin Strategic Reserve, just days earlier a Memorandum of Understanding (MoU) had been signed between Pakistan and an American organization, the World Liberty Financial Corporation, an entity associated with the son of former U.S. President Donald Trump.
According to this agreement, a framework was laid out to transform Pakistan into a crypto hub in South Asia.
This development has the potential to elevate cooperation between Pakistan and the United States in the fields of technology, investment, and digital finance—something that can influence the region’s balance of power.
India’s media and think tanks are now visibly disturbed by Pakistan’s announcement.
Several Indian analysts have advised the Modi administration to closely monitor the growing crypto-related ties between Pakistan and the United States.
One Indian analyst wrote in his article:
“Pakistan is strengthening its position with America through crypto, and this is alarming for India.”
This reaction makes it clear that India does not view Pakistan’s digital advance as a mere economic tactic, but as a geo-political maneuver.
It also reflects the emerging reality that the wars of the future will not be fought merely on borders or economies, but within the domains of digital economies, crypto reserves, and data dominion.
In Pakistan, cryptocurrency remained for a long time caught in legal ambiguity and governmental hesitation.
At times, there were indications of a complete ban; at others, concerns regarding security were cited.
However, the scenario has now drastically changed.
Bilal Bin Saqib, head of the Pakistan Crypto Council, confirmed this transformation while speaking at a Bitcoin conference held in Las Vegas, USA.
He stated that the Government of Pakistan has abandoned the policy of viewing cryptocurrency as “illegal”, and is now preparing to establish a strategic Bitcoin reserve, modeled after the United States.
Bilal Bin Saqib further revealed that the government has decided to allocate 2000 megawatts of additional energy for Bitcoin mining and high-performance computing data centers, which is a historic step.
Across the world, 2025 is being declared the year of the “Digital Currency Revolution.” China, the United States, Russia, and several European countries are already working on digital currencies. In such a scenario, Pakistan’s step, if advanced with the right strategy, transparent regulations, and the trust of global investors, can help the country become a leader in the digital economy.
Potential Benefits for Pakistan:
• Revival of global investment: The agreement with the United States’ “World Liberty Financial Corporation”, an institution associated with President Trump, can take Pakistan into a new domain of global investment.
• Digital Sovereignty: A Bitcoin reserve can give Pakistan financial independence, where it can formulate its own policies free from the conditions of institutions like the IMF or FATF.
• Leadership in technology: Allocating 2000 megawatts of energy for data centers and crypto mining can make Pakistan a prominent player in the digital infrastructure sector of South Asia.
• Soft power: Pakistan will be the first Muslim state to not only accept cryptocurrency but to make it a part of state strategy, which can increase its influence in the Islamic world.
Potential Risks:
• International pressure: Apart from the United States, most global powers (especially the EU and China) hold strong reservations about crypto. Pakistan’s move could provoke them.
• Internal disorder: To adopt crypto, transparent laws, strong cybersecurity, and crypto literacy are urgently needed. Otherwise, this Bitcoin reserve could become a tool for corruption or digital terrorism.
• If Pakistan does not manage the use of cryptocurrency in an organized and secure way, global financial watchdogs (especially FATF) could once again take strict measures, and the country could face restrictions like the “grey list.”
• The challenge of public trust: In Pakistan, ordinary citizens still view crypto as “gambling” or “fraud.” Establishing state-level trust for it will be an internal battle as well.
Here in the American city of Las Vegas, when Bilal Bin Saqib, speaking at the Bitcoin conference, announced:
“We are turning crypto from a crime into a strength,”
this announcement was not just an economic plan — it was a redefinition of the South Asian narrative.
A narrative in which Pakistan is presenting itself not just as a state, but as a leading force of digital sovereignty.
In this context, India’s hesitation is an admission of Pakistan’s boldness.
But for Pakistan, this is not just slogan-shouting — it is a test:
• Can we truly run crypto responsibly at the state level?
• Is our bureaucracy, judiciary, and establishment prepared for this transformation?
• And can we use technology not just as a fashion, but as an ideological weapon?
The establishment of Pakistan’s Bitcoin reserve is not merely an economic announcement — it is a signal of strategic positioning at the global level.
The concern arising in India confirms that the South Asian region has entered a new phase of digital cold war.
If Pakistan uses this opportunity with wisdom, it can not only open the doors to foreign investment, but also advance the country toward digital sovereignty, technological development, and global influence.
The world is changing. Code is replacing bullets, and blockchain nodes are replacing secret agencies. If Pakistan proceeds in this new field with honesty, foresight, and strategy, then this will not merely be a crypto revolution it could be a political rebirth.
But if we miss this opportunity, then in the times to come, history will remember us only as “Bitcoin dreamers ahead of their time.”
