Pakistan and El Salvador have signed a Letter of Intent (LoI) to collaborate on initiatives related to Bitcoin and broader digital assets, as reported by The News. The agreement was formalized during a meeting in San Salvador between Pakistan’s Minister of State for Crypto and Blockchain, Bilal Bin Saqib (who also serves as the CEO of the Pakistan Crypto Council), and Salvadoran President Nayib Bukele.
The Rise of ‘Biplomacy’
Discussions during the meeting were entirely focused on Bitcoin and broader digital asset collaboration, a development analysts are now terming ‘Biplomacy’—a portmanteau of Bitcoin and diplomacy—highlighting the increasing influence of decentralized technologies in international relations. This meeting reflects Pakistan’s growing interest in adopting strategies from the first nation to officially recognize cryptocurrency as legal tender. El Salvador became a pioneer in this regard after its congress approved President Bukele’s proposal to embrace Bitcoin to promote financial inclusion, investment, and economic development.
El Salvador’s Bitcoin Investment Sees Significant Growth
According to various news reports, El Salvador’s national Bitcoin reserves have now surged past $760 million, following a recent price increase above $123,000. With over 6,237 BTC in its reserves, acquired at an average price of $42,000, the country’s investment has nearly tripled in value.
Paving the Way for Future Cooperation
The LoI signed by both parties establishes a framework for bilateral collaboration in critical areas. These include the public-sector adoption of digital assets, the advancement of blockchain-based financial inclusion, and the development of policy frameworks tailored for emerging economies.
“El Salvador’s bold Bitcoin experiment has inspired governments around the world,” stated Saqib. “This visit marks the beginning of a strategic relationship rooted in innovation, inclusion, and shared learning.” President Bukele welcomed the discussions and reaffirmed El Salvador’s support for other nations exploring Bitcoin as a tool for financial sovereignty.
This diplomatic outreach comes as Pakistan actively moves to formalize its stance on digital assets. The government recently established the Pakistan Virtual Assets Regulatory Authority (PVARA) and has announced plans for a strategic Bitcoin reserve.
