The International Monetary Fund (IMF) has rejected Pakistan's proposal for subsidized electricity for cryptocurrency mining, raising questions about energy grid stability and the investment climate in the country.
IMF's Rejection of Pakistan's Proposal
The IMF has turned down the proposal to provide preferential electricity prices for cryptocurrency mining in Pakistan. The plan aimed to allocate 2,000 megawatts for mining and AI data centers, as suggested by the Pakistan Cryptography Committee. The IMF expressed concerns over grid burden and market distortions.
Impact on Investment
The IMF's decision affects potential foreign investments in the cryptocurrency and AI sectors. As Pakistan renegotiates its subsidies, certain aspects of the plan's legality have come into question. Dr. Fakhray Alam Irfan, Secretary of Pakistan's Ministry of Power, noted, "As of now, the IMF has not agreed," underscoring the lack of consensus on the proposal.
Overall Market Condition
Meanwhile, Bitcoin's (BTC) value has risen to $109,724.66, reflecting a 1.91% increase over the past 24 hours. The market cap has reached $2.18 trillion, with BTC holding a 64.32% market dominance. Trading volume has seen a 13.47% increase over the last day, with a significant growth of 29.92% over the last 90 days.
The IMF's refusal of electricity subsidies for mining presents Pakistan with critical questions about balancing cryptocurrency industry development with grid stability, which could ultimately affect foreign investments in the country.
