Crypto shockwaves: Pakistan’s Bitcoin reserve sends India into panic mode

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In a bold technological and economic manoeuvre, the Chairman of the Pakistan Crypto Council (PCC) announced at the Bitcoin Vegas Conference 2025 that Pakistan is preparing to launch its first-ever Bitcoin Mining Strategic Reserve. The initiative involves the allocation of 2,000 MW of energy for cryptocurrency mining and artificial intelligence (AI) data centers, forming part of a broader national vision to integrate digital assets into the formal economy and align with international regulatory frameworks.
The announcement drew immediate global attention and concern from neighboring India. Indian think tanks and analysts have urged swift governmental response, fearing Pakistan could take the lead in Asia’s crypto and AI infrastructure. While some experts in India acknowledged the potential for innovation and investment, others questioned the feasibility of such a large-scale energy allocation in light of Pakistan’s own electricity supply issues and the inherent volatility of cryptocurrency markets.
The International Monetary Fund (IMF), currently in negotiations with Pakistan regarding an extended financial program, has also raised questions about the timing and viability of the plan. Nevertheless, the power allocation forms a crucial element of Pakistan’s digital economic strategy. Central to this is the newly approved Pakistan Digital Asset Authority (PDAA), which will regulate digital asset exchanges, wallets, stablecoins, and DeFi platforms, and oversee asset tokenization in accordance with global standards such as those set by the Financial Action Task Force (FATF).
However, the formation of the PCC through a Prime Ministerial executive orderwithout involvement from the State Bank or Finance Ministryhas drawn parliamentary criticism at home. Lawmakers are questioning why such a significant body was not established through proper legislation and why no terms of reference (ToRs) have yet been published. Legal experts warn that the absence of formal structure may create governance risks in the future.
A parallel narrative that has gained traction is India’s unease with Pakistan’s rapid progress in digital and economic domains. In the current fiscal year, Pakistan recorded $3.14 billion in foreign remittances via IT exports. Major events like the Islamabad Foreign Digital Direct Investment (DFDI) Conference (April 29-30, 2025) and the Overseas Pakistanis Convention (April 13-15, 2025) reflect growing investor interest. A record $4.1 billion in remittances received in March 2025 alone has further alarmed Indian policymakers. These developments underscore Pakistan’s dual-track progress, fighting externally sponsored terrorism while simultaneously strengthening its economy under IMF constraints.
Amid diplomatic engagements, Pakistan’s parliamentary delegation is visiting the United States and other key capitals to counter India’s ongoing disinformation campaigns. The delegation aims to expose India’s recent false flag operations, including the Pahalgam incident, which India hastily blamed on Pakistan without credible evidence. Pakistan categorically denied involvement and offered a joint investigation, reinforcing its stance as a responsible nation committed to peace. The delegation’s broader objective includes reminding the international community of India’s role in supporting banned terrorist groups operating inside Pakistan.
Meanwhile, India’s 59-member delegation had struggled to gain momentum on the global stage, especially as allegations of staged incidents and diplomatic overreach persist. Pakistan, by contrast, has taken a firm stance against terrorism in all forms, openly condemning attacks like those on the Jaffar Express and in Khuzdar, where innocent civilians and students lost their lives. India’s failure to reciprocate or condemn such acts has drawn criticism and is contributing to its growing diplomatic isolation, evident in its exclusion from the upcoming G7 summit in Canada.
Pakistan’s strategic leap into Bitcoin mining and AI infrastructure reflects a broader vision to modernize its economy and assert leadership in digital innovation. While India views this progress with suspicion, Pakistan continues to counter both physical and narrative attacks through diplomatic outreach and transparent governance. The establishment of regulatory bodies and rising IT exports demonstrate that the nation is on a transformative path. The ongoing efforts to expose India’s disinformation tactics are resonating globally. If sustained, Pakistan’s digital and diplomatic resurgence could reshape South Asia’s geopolitical and technological landscape.