Highlights of History

• Pakistan plans to use excess electricity for Bitcoin mining to minimize energy waste.

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

• Pakistan may develop a legal framework to legally support Bitcoin mining.

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

Government Explores Bitcoin Mining

The Ministry of Energy is actively considering introducing a special electricity tariff for sectors such as Bitcoin mining in order to attract investment without relying on government subsidies.

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

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

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

What is different about Pakistan

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 first adopted it and then imposed higher taxes.

Iran, on the other hand, offered preferential tariffs but often suspended production during peak electricity demand.

However, Pakistan is taking a different tack. 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-powered data centers.

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

Pakistan May Develop New Rules for Cryptocurrencies

During the meeting, Bilal Bin Saqib presented a plan to use Pakistan’s extra energy for Bitcoin mining and outlined the need for clear regulations for the industry. He noted that the country should create policies that meet its needs and benefit society.

While the plan looks promising, its success depends on good implementation. Key factors will be legal clarity, compliance with global financial regulations, and ensuring a stable electricity supply.

Source: cryptonews.net