Pakistan to leverage surplus electricity for Bitcoin mining

Pakistan has proposed using surplus electricity for Bitcoin mining and blockchain data centers, marking a significant shift in its stance on cryptocurrencies.

At the inaugural meeting of the Pakistan Crypto Council (PCC) on March 21, the idea to redirect surplus electricity into Bitcoin mining was presented. This aims to transform idle energy into revenue and stabilize Pakistan's power sector.

The initiative seeks to attract foreign investment, reduce payments for unused energy, and position Pakistan as a regional hub for blockchain technology. Special electricity tariffs are being developed for crypto miners without relying on subsidies.

Pakistan legalized cryptocurrency as legal tender in November 2024 and is now working on a comprehensive regulatory framework. This includes licensing regimes, consumer protection, and compliance with international standards.

Finance Minister Muhammad Aurangzeb emphasized the importance of this initiative for economic transformation and youth empowerment. Pilot programs and phased rollouts are planned to ensure smooth implementation.

This move aligns Pakistan with global trends in utilizing surplus energy for crypto mining while fostering a future-ready digital economy.

The government is working on creating attractive tariffs specifically for Bitcoin mining and blockchain data centers. These tariffs aim to utilize surplus electricity at marginal costs without subsidies, making Pakistan a competitive destination for global miners.

To avoid burdening the national grid during peak demand periods, Pakistan intends to establish a stable and dedicated energy supply for crypto mining operations. This approach would ensure uninterrupted power availability for miners while optimizing surplus electricity usage.

The power division is consulting various stakeholders, including policymakers and industry leaders, to design effective energy strategies that balance the needs of emerging industries with national energy stability.

The country is developing a comprehensive regulatory framework to support Bitcoin mining legally. This includes licensing regimes, compliance with international obligations, and policies tailored to the country's needs, ensuring smooth integration of crypto mining into the economy.

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