The International Monetary Fund has rejected Pakistan's proposal for subsidized electricity for cryptocurrency mining, citing concerns about grid strain and economic risks.
Reasons for IMF Rejection
Dr. Fakhray Alam Irfan, Pakistan's Secretary of Power, announced the IMF's decision during a Senate meeting. The main reasons for rejection are the risks to the national grid and potential economic disruptions.
Pakistan's Crypto Mining Plans
Pakistan planned to allocate 2000 megawatts of surplus power for crypto mining to attract foreign investment and develop a national Bitcoin reserve. However, the IMF's rejection highlights the instability of Bitcoin-related projects.
Consequences for Economy and Market
Negative repercussions are expected for Pakistan's energy sector and the broader Bitcoin market. The IMF has expressed concerns regarding market distortions and risks to other sector tariffs, further complicating the situation for crypto mining.
The IMF's refusal to support crypto mining in Pakistan calls into question the sustainability and future of such initiatives. Stakeholders are reconsidering their strategies amidst evolving regulations.
