Pakistan and Bhutan Lead Government Blockchain Adoption with Bitcoin Reserves and Gold-Backed Tokens

Pakistan Positions Bitcoin as National Financial Infrastructure

Pakistan is positioning Bitcoin and blockchain technology as foundational infrastructure for its economy, with government officials calling for digital assets to replace traditional economic models. Bilal Bin Saqib, Pakistan's minister and chairman of the Virtual Asset Regulatory Authority (PVARA), announced that the country sees "Bitcoin, digital assets, and blockchain not just as speculation but as infrastructure" during a roundtable in Abu Dhabi ^[1].

The country has climbed six places to rank third in Chainalysis' 2025 Global Crypto Adoption Index, emerging as one of the world's fastest-growing crypto markets ^[1]. In May, Saqib announced that Pakistan is preparing to establish a strategic Bitcoin reserve and is moving toward more pro-crypto regulatory policies ^[1].

Surplus Energy Allocated for Crypto Mining

Pakistan has allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI data centers as part of its national digital transformation push ^[1]. Financial officials say the plan is intended to attract foreign investment and support new high-tech jobs by directing excess power into AI and crypto infrastructure ^[1].

In September, Pakistan invited global crypto companies to apply for licenses under its new federal regulatory regime, with PVARA issuing a call for expressions of interest from major exchanges and service providers ^[1].

Saqib emphasized Pakistan's demographic advantage, noting that 70% of the country's population is under the age of 30 ^[1]. "If El Salvador can do it with 6 million people, imagine what Pakistan can do with 40 times the population and one of the fastest growing digital forces in Asia," he stated ^[1].

Bhutan Launches Gold-Backed Sovereign Token

Bhutan has launched TER, a gold-backed sovereign token built on the Solana blockchain, issued by the Gelephu Mindfulness City (GMC) Special Administrative Region ^[2]. The token is designed to link traditional stores of value with blockchain-based finance and will be issued and custodied through DK Bank, Bhutan's first digital bank regulated by the Royal Monetary Authority ^[2].

"By issuing gold-backed digital tokens with sovereign branding, we are demonstrating how a crypto-friendly city can welcome responsible innovation while staying rooted in Bhutan's values of transparency, sustainability, and long-term stewardship," said Jigdrel Singay, a GMC board director ^[2].

The digital asset financial services platform Matrixdock, which received the Financial Services License from the Gelephu Mindfulness City Authority in September, will provide the tokenization infrastructure for the project ^[2].

Bhutan's Expanding Blockchain Strategy

The TER token launch builds on Bhutan's national blockchain strategy that began in 2019 when the nation launched its own Bitcoin mining operations using abundant hydroelectric resources ^[2]. Data from Bitcoin Treasuries shows that Bhutan has acquired 5,984 BTC valued at over $541 million at current prices ^[2].

In May 2025, Bhutan rolled out a national-level crypto payment system enabling tourists to pay for services such as visas, travel, and local purchases using various digital assets ^[2]. The payment system has gained substantial traction, with over 1,000 vendors now participating on the network ^[2].

In October, Bhutan started migrating its national digital identity system to the Ethereum blockchain, marking a global first for self-sovereign digital IDs ^[2]. The country has also deepened its blockchain integration with an Ethereum staking initiative this year ^[2].

Growing Market for Tokenized Assets

The initiatives come as the total stablecoin market cap surpassed $300 billion this year, according to DefiLlama, with momentum boosted after US President Donald Trump signed the GENIUS Act into law in July, providing regulatory clarity for stablecoins ^[2]. The tokenized gold market is now valued at more than $4.1 billion, according to CoinGecko, with Tether Gold representing the largest share ^[2].