Key Takeaways
- Pakistan plans to allocate part of its 10GW surplus electricity for Bitcoin mining.
- The government is collaborating with mining companies to optimize energy use.
- The country has adopted a pro-crypto stance to attract international investment.
Pakistan is considering using its surplus electricity to mine Bitcoin (BTC).
The proposal comes from the country’s new government, which has shown a renewed interest in crypto.
The move marks a stark departure from past policies that banned crypto activities.
Harnessing Surplus Energy for Bitcoin
Bilal bin Saqib, the head of Pakistan’s Crypto Council and advisor to the finance minister, confirmed the discussions with Bitcoin miners on Wednesday.
Pakistan generates about 10GW of surplus electricity, much of which is wasted due to underutilization. This surplus energy costs the government millions in unspent power obligations.
Reports estimate that the country’s surplus power capacity could range from 10,000 to 15,000 MW, depending on seasonal demand and system limitations.
While most of this power comes from fossil fuels, nearly 40% is derived from renewable sources, including wind, hydro and solar.
The government now wants to use this unused power for Bitcoin mining, giving Pakistan the opportunity to join nations like Bhutan, which already uses its surplus hydropower for crypto.
By doing this, Pakistan could avoid wasting valuable resources while accumulating Bitcoin as a long-term asset.
A Shift to Pro-Crypto Policies
This energy strategy fits into a more significant shift in Pakistan’s approach to crypto policies.
Pakistan has made significant strides in developing a crypto-friendly environment under the current government, which has positioned itself as tech-forward and pro-youth.
Earlier this year, Pakistan formed the Crypto Council to explore the potential of cryptocurrencies and blockchain technology.
The council is tasked with creating a regulatory framework for the crypto industry and finding ways to integrate blockchain into Pakistan’s financial infrastructure.
The government also intends to legalize crypto trading to attract international investment and bring more foreign capital into the country.
Advisors from countries including the UAE, Nigeria, Turkey, and the U.S. are already involved in shaping the country’s crypto regulations.
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