Pakistan Bets on Bitcoin Mining to Solve Its Power Problem

Key aspects of history

• Pakistan is planning to use excess electricity to mine Bitcoin in a bid to reduce energy waste.

• Unlike other nations, Pakistan intends to channel its excess electricity into cryptocurrency mining.

• The country may develop a legislative framework to legalize support for Bitcoin mining.

Pakistan may be on the cusp of an unexpected turnaround – turning to Bitcoin mining to solve its energy problems. With excess electricity creating serious economic difficulties, the government is exploring ways to attract international Bitcoin miners to turn unused energy into revenue rather than waste. Could this be the start of a digital revolution in the country?

The state is analyzing the possibility of bitcoin mining

The Department of Energy is actively considering introducing a special electricity tariff for the Bitcoin mining sector in order to attract investors without having to rely on government subsidies.

The concept is simple: miners need affordable electricity, and Pakistan has plenty of it. By bridging the gap, the country could transform a long-standing energy problem into an economic opportunity.

The idea received support during a key meeting between Energy Minister Awais Leghari and the newly formed Pakistan Cryptocurrency Council (PCC) CEO Bilal bin Saqib. The discussion focused on how Pakistan can position itself as a global hub for cryptocurrency mining.

The meeting was followed by a larger meeting chaired by Finance Minister Muhammad Aurangzeb and attended by senior officials, including the State Bank Governor and regulators. The focus was on whether Pakistan should incorporate cryptocurrency mining into its economic strategy.

What makes Pakistan stand out

Research shows that Bitcoin miners spend up to 70% of their revenue on electricity. Many countries have difficulty managing this demand. For example, China banned cryptocurrency mining due to environmental concerns, while Kazakhstan initially embraced it before imposing higher taxes.

Iran, by contrast, offered preferential tariffs but often suspended production during peak power demand.

However, Pakistan is taking a different approach. Instead of burdening the national grid, the country is aiming to create a stable and competitive power supply specifically designed for cryptocurrency mining. This strategic move could make Pakistan a global hub for blockchain-focused data centers.

If Pakistan successfully attracts mining companies, it could create a new source of revenue while making better use of its excess electricity.

Pakistan May Set New Rules for Cryptocurrencies

At the meeting, Bilal Bin Saqib presented a plan to use Pakistan’s extra energy for Bitcoin mining and set clear guidelines for the industry. He noted that the country needs to develop policies that meet its needs and benefit the people.

While the plan looks promising, its success depends on implementation. Legislative clarity, compliance with international financial norms, and ensuring a stable electricity supply will be key.

Source: cryptonews.net