Pakistan Moves to BTC Mining with Surplus Power

Pakistan has become the latest country to explore the possibility of mining cryptocurrency using excess electricity amid an economic crisis that has reduced demand for electricity in the South Asian nation.

The new initiative is being spearheaded by the newly formed Pakistan Cryptocurrency Council, which aims to transform the country into a digital asset hub. CEO Bilal Bin Saqib told Reuters that the government will also promote the development of artificial intelligence (AI) data centers with excess capacity.

The locations of the facilities will depend on the availability of electricity in different regions. Currently, the northwestern province of Khyber Pakhtunkhwa is the leader in electricity production, much of which comes from hydroelectric power plants.

Pakistan has seen a breakdown in its electricity sector in recent years. Since 2021, electricity prices have increased by more than 150%, forcing many to look for alternatives to the national grid. Wind and solar energy use has increased significantly, which has also led to a decrease in electricity demand.

As a result, there is a surplus of electricity, for which the government still has to pay under long-term contracts with independent power producers.

It is this excess power that the Pakistani government intends to use for mining BTC block rewards and AI data centers.

As the head of the Pakistan Cryptocurrency Council, Saqib will spearhead the initiative. Since his appointment, he has been a vocal advocate for the adoption of digital assets in South Asia’s second-most populous country. Last month, he said in an interview that Pakistan is ready to embrace blockchain and “it’s time to stop being on the sidelines.”

Discussing the latest developments in the mining space, Sakib noted that there are about 20 million digital asset owners in the country.

“Pakistan is among the top 10 countries in the world in terms of cryptocurrency adoption, despite it not being legalized,” he added.

Pakistan is not the only country exploring BTC mining using excess energy, which proponents say is generally a positive for their countries. However, a recent study published in the Bulletin of the Atomic Scientists concluded that such claims are “short-sighted and unfounded.” The researchers found that BTC mining brings short-term profits to the region, but “impedes critical investments in storage and network infrastructure.”

South Korean gambling scam disguised as BTC mining

In South Korea, authorities have shut down an illegal gambling scheme masquerading as BTC mining.

Police in the southwestern metropolis of Gwangju raided an operation thought to involve unlicensed block reward miners, but found a gaming room with more than 50 gaming consoles. Local media reported that the operation processed transactions worth about $100,000.

The owner, known only as Mr. A, was charged with violating the Game Industry Promotion Act by allegedly charging 50,000 won ($35) an hour to use the game consoles.

“We will actively prevent the reopening and spread of illegal gambling establishments even after they are closed,” said police chief Jeong Kyung-ho.

While the latest raid was not related to cryptocurrency, authorities around the world have reported dozens of busts over the past week involving digital assets.

Hawaii officials issued a warning Friday urging citizens to be on the lookout for a growing wave of “crypto” scammers targeting pigs. Most of the scammers pose as friends or romantic partners online before manipulating their victims into fictitious investments using digital assets.

In Israel, cybersecurity company BrandShield has released a new report that says websites masquerading as legitimate shopping platforms or celebrities have seen an 800% increase in the past year. Rapid advances in AI, which has become more accessible and easier to use, have exacerbated the threat, said BrandShield CEO Yoav Keren.

“This poses a serious danger because it makes it more difficult for users to distinguish between real and fake,” he added.

Keren stressed that the rise in cryptocurrency-related scams has led to increased public distrust of digital assets.

One of the most popular avenues for “crypto” scammers is BTC ATMs, which provide scammers with increased anonymity and limited options for victims. In 2023, victims in the United States alone lost $114 million through these ATMs, a figure that has risen sharply as digital assets have become more popular over the past two years.

American nonprofit AARP, which focuses on seniors, has introduced a new bill in the Rhode Island Senate that targets BTC ATMs. It would require operators to publish detailed disclosures before any transaction, set a daily limit, and refunds in cases of reported fraud.

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Source: cryptonews.net