The announcement by Bilal Bin Saqib, Pakistan's Minister of Cryptocurrencies, marks a major step forward in the institutional adoption of digital assets. During the Bitcoin 2025 conference, Saqib revealed that Pakistan will establish an official Bitcoin reserve and deploy it on decentralized finance (DeFi) platforms to generate returns. This strategy represents an innovative step in the integration of cryptocurrencies into the national economy.

Context and Official Announcement of the Bitcoin Reserve

Bilal Bin Saqib, CEO of the Pakistan Crypto Council, presented at Bitcoin 2025 the plan to create a sovereign reserve based on Bitcoin. This digital asset will function as a store of value for the country, similar to traditional foreign currency reserves but with a focus on blockchain technology.

In an interview with specialized media outlets, Saqib stated that the reserve will not be limited to passive Bitcoin accumulation but will incorporate mechanisms to maximize its value through participation in DeFi protocols. This initiative was partly inspired by conversations with Michael Saylor, Executive Chairman of MicroStrategy, a renowned institutional Bitcoin investor.

Deployment of the Bitcoin Reserve on DeFi Platforms

The use of the Bitcoin reserve in DeFi involves leveraging protocols that generate income through lending, staking, and other financial mechanisms without traditional intermediaries. This turns the reserve into a productive asset capable of strengthening public finances.

Pakistan plans to integrate this reserve with platforms primarily based on Ethereum, which hosts most of the current DeFi protocols. The use of stablecoins linked to Bitcoin or Ethereum is also being considered to facilitate transactions within the ecosystem.

However, the detailed implementation is still under development, facing technical challenges such as security, volatility, and interoperability with national financial systems.

Impact on the Crypto Ecosystem: Bitcoin, Ethereum, and DeFi

This announcement carries significant implications for the cryptocurrency market:

• Bitcoin as an institutional asset: The creation of a sovereign reserve reinforces the perception of Bitcoin as a store of value for emerging countries.
• Boost for DeFi: Official participation in DeFi protocols may accelerate the adoption and legitimization of these platforms, especially on Ethereum and compatible networks.
• Demand and liquidity: Official accumulation could influence global Bitcoin demand and pricing.
• Interoperability: The initiative could promote integration between Bitcoin and other blockchains through bridges and wrapped tokens.

Regulatory Considerations and Legal Challenges

Pakistan has maintained a cautious stance toward cryptocurrencies, with previous restrictions. The creation of an official reserve signals a shift toward proactive regulation and institutional acceptance.

The use of DeFi presents additional regulatory challenges, as many protocols operate without centralized oversight, complicating compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements. The government will need to design a legal framework that balances innovation, security, and compliance.

Collaboration with international experts like Michael Saylor indicates an effort to seek guidance in establishing effective and secure policies.

Conclusion

Pakistan's initiative to deploy its Bitcoin reserve on DeFi platforms represents a milestone in integrating cryptocurrencies into the real economy of emerging countries. This model may solidify Bitcoin as a sovereign asset and strengthen the DeFi ecosystem, particularly on Ethereum.

Success will depend on the ability to implement clear regulations and manage technical and financial risks. Pakistan positions itself as a relevant case in the global development of digital finance and institutional cryptocurrency adoption.