From El Salvador to Pakistan: How Governments Reshaped Crypto in 2025

Governments around the world have moved from looking at crypto to directly embedding Bitcoin and digital assets into state policy in 2025.

Governments in the United States, Latin America, Europe and Asia rewrote their crypto playbooks in 2025, moving from observation to direct action as Bitcoin (BTC) and digital assets entered state policy on an unprecedented scale.

The year marked a clear break from previous caution, with national reserves, energy strategies and regulatory systems reshaping around crypto’s growing role in public finances.

Governments move from sidelines to state strategy

CoinMarketCap shared a series of policy moves in posts published on December 25 on

First, there was the United States’ confirmation of the creation of a strategic Bitcoin reserve and the halt of automatic sales of seized BTC, quietly shifting the flagship cryptocurrency from a confiscated asset to a long-term treasury investment. This move, carried out by executive agencies rather than legislators, sent a strong signal that Bitcoin is now within the federal balance sheet plan.

In the Middle East, the United Arab Emirates (UAE) has completed and enforced extensive crypto regulations through Dubai’s VARA and Abu Dhabi’s ADGM. Major exchange and custody firms expanded their operations there, driven more by regulatory clarity than price excitement. The framework has since become a reference point for other jurisdictions seeking stability over short-term profits.

For its part, Latin America saw a more nuanced recalibration. El Salvador ended its requirement of Bitcoin as legal tender after talks with the International Monetary Fund, but kept its national BTC holdings intact. That shift did not mean an exit. Last month, during a sharp market downturn, the country bought more than 1,000 BTC worth about $100 million, bringing its total holdings to about 7,500 BTC, the Bitcoin Office said. Essentially, the policy focus shifted from ideology to fiscal discipline, while balance sheet exposure remained.

Meanwhile, Pakistan took a different path by linking crypto to energy planning. The government set aside 2,000 megawatts of excess energy for Bitcoin mining and AI data centers and began discussions with Binance regarding a potential $2 billion investment. Mining was designed as a way to convert unused electricity into industrial production.

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Central banks are testing their limits as regulations tighten

Europe and Brazil added further depth to the shift in 2025. The Czech National Bank, for example, launched a small pilot for Bitcoin purchases and announced an $18 million stake in Coinbase shares in July, marking the first public move into crypto-linked assets. Although the measure was limited in scope, it lowered a long-standing barrier for developed market central banks.

Brazil focused on structure rather than reserves, with the country rolling out licensing rules for crypto companies and bringing stablecoin flows under foreign exchange supervision. This approach builds on previous steps, including the approval of a spot XRP ETF in December 2024, which helped channel institutional demand into regulated markets.

Taken together, these actions show that 2025 was less about enthusiasm and more about decisions. Some governments have tightened controls, others have invested capital, and some have integrated cryptocurrencies into energy and financial planning. What changed was not the belief, but the acceptance that crypto is now part of state policy and not a temporary experiment.