Key Takeaways
- Pakistan plans to build a national Bitcoin reserve using confiscated BTC, not taxpayer funds.
- The reserve was announced by crypto council head Bilal bin Saqib at the Bitcoin Conference in Las Vegas.
- The country has also allocated 2,000 MW of surplus electricity to support Bitcoin mining operations.
Pakistan is turning a new page in its crypto policy, announcing plans to build a national Bitcoin (BTC) reserve—without spending public money.
Instead, the country will follow the lead of the U.S. and Russia by using confiscated Bitcoin seized from criminals.
Pakistan’s Bitcoin Reserve to Be Built With Seized Crypto, Not Public Funds
The Bitcoin strategic reserve, revealed by Pakistan’s crypto council chief Bilal bin Saqib during the recent Bitcoin Conference in Las Vegas, marked a significant shift in tone from the government.
At first, details were scarce. However, in a follow-up TV appearance, Saqib clarified that the reserve will be built using Bitcoin confiscated from criminals, not purchased with state reserves or taxpayer money.
He emphasized that no public funds will be used to acquire Bitcoin, echoing a similar model used by the U.S. and now increasingly adopted by other governments.
Bitcoin National Vault and Surplus Energy for Mining
Saqib also shared new details about Pakistan’s Bitcoin mining plans. Pakistan has allocated 2,000 megawatts of surplus electricity to support mining operations, but the state won’t mine Bitcoin itself.
Instead, the government will act as a facilitator, providing energy to private miners while collecting miner fees, which will be added to the national Bitcoin reserve.
Saqib also revealed that Pakistan will accept global donations to support what he called the Bitcoin National Vault, further expanding the reserve without using domestic resources.
This “no-taxpayer-funds” model is gaining traction globally as a politically safer way to embrace Bitcoin, especially in countries where public spending is under intense scrutiny.
A Big Shift, but not Without Internal Pushback
The reserve plan is just one part of a broader, more crypto-friendly agenda introduced by Pakistan’s newly formed crypto council.
Over the past month, the council has legalized Bitcoin mining, announced work on a FATF-compliant regulatory framework, and proposed the creation of a Bitcoin National Wallet and AI-powered data centers connected to mining and blockchain development.
But the pivot has triggered pushback from within the government.
Pakistan’s Finance Secretary Imdadullah Bosal publicly stated that there is no legal framework for a national Bitcoin reserve and that cryptocurrency remains illegal under current law—underscoring an ongoing power struggle over the country’s crypto future.
Still, the contrast with Pakistan’s previous policy—an outright ban on crypto activities—is striking.
If the reserve moves forward, Pakistan could soon join the small but growing list of countries holding Bitcoin on their balance sheets, signaling a major bet on the future of decentralized finance.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
