Pakistan has allocated 2,000 megawatts (MW) of electricity capacity for Bitcoin mining and AI data centers in the first phase of a national initiative to promote cryptocurrency adoption. This move aligns with the country's efforts to legalize digital assets and attract foreign investment.
Key Developments
- Energy Monetization: The Pakistan Crypto Board-led project aims to monetize underutilized energy resources while creating high-tech jobs.
- Coal Power Repurposing: Existing coal-fired power plants in Sahiwal, China Hub, and Port Qasim — currently operating at just 15% capacity — will be retrofitted to support this program.
- Regulatory Push: With an estimated 15–20 million crypto users, Pakistan seeks to establish a regulatory framework to grow its domestic crypto ecosystem.
Strategic Partnerships
- Binance Collaboration: In April, Pakistan invited Binance co-founder Changpeng Zhao to help develop a digital finance platform.
- U.S. Ties: Preliminary agreements were signed with a crypto initiative linked to former U.S. President Donald Trump to advance blockchain innovation.
Economic Impact
The Federal Government views cryptocurrency as a catalyst to revive Pakistan's economy, which narrowly avoided debt default in 2023. Global crypto miners and data infrastructure firms have shown interest, though specific companies remain undisclosed.
FAQ Section
Q: Why is Pakistan focusing on Bitcoin mining?
A: To monetize surplus energy, create jobs, and position itself as a crypto-friendly destination for foreign investment.
Q: Which energy sources will power these operations?
A: Underutilized coal plants and other existing infrastructure with excess capacity.
Q: How does this fit into Pakistan’s broader crypto strategy?
A: By establishing clear regulations and partnering with industry leaders like Binance to build a sustainable digital finance ecosystem.
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