Pakistan is looking to leverage its surplus electricity for Bitcoin mining, but the country's plans are facing resistance from the International Monetary Fund.
Pakistan's Strategy: Bitcoin Mining for DeFi and Growth
Pakistan has a bigger vision behind its Bitcoin mining plans. It wants to build a Bitcoin reserve while expanding into DeFi yields. Bilal Bin Saqib from the Pakistan Crypto Council says the country plans to grow its Bitcoin holdings using DeFi protocols. This would give Pakistan a new digital asset layer while boosting its financial independence.
Earlier this year, Pakistan launched the Pakistan Digital Assets Authority (PDAA) to regulate crypto activities. It also announced plans to allocate 2,000 megawatts from the state grid for Bitcoin mining and AI centers. This move aims to drive tech employment and attract crypto investors.
IMF Pushback: A Major Setback for Pakistan's Bitcoin Plans
The IMF's stance could slow Pakistan's plans to become a regional crypto hub. The IMF argues that subsidizing electricity for Bitcoin mining would strain the country's resources. It also warns of potential legal and tariff complications. Pakistan, however, believes using runoff energy for Bitcoin mining is practical. The country has surplus power during winters, and it sees crypto as a tool for economic transformation.
The Pakistan Crypto Council and the Ministry of Finance argue that Bitcoin mining will help manage the surplus while earning foreign capital.
What's Next for Pakistan, Bitcoin Mining, and DeFi?
Despite the IMF's rejection, Pakistan is not giving up. The proposal for Bitcoin mining using surplus electricity is still under discussion with the World Bank. The government is refining its plan to address the IMF's concerns while pushing for crypto growth. It wants to balance its energy market while using Bitcoin mining to support its DeFi strategies.
The government's crypto plans align with a wider push to digitize Pakistan's economy. Using Bitcoin mining to build reserves and generate DeFi yields could add a new dimension to Pakistan's financial landscape.
Pakistan's efforts to utilize surplus electricity for Bitcoin mining face significant challenges, particularly from the IMF's response. However, the country continues to seek solutions to realize its ambitious strategy in the crypto sector.
