Pakistan is making significant strides in the world of digital assets, particularly in the realm of Bitcoin mining and artificial intelligence (AI) data centers. The country has announced plans to allocate a whopping 2,000 megawatts of electricity to support these initiatives, with a focus on repurposing underutilized coal-powered plants to drive this new wave of technology.
This move comes as part of Pakistan’s broader efforts to legalize cryptocurrencies, attract foreign investment, and modernize its tech infrastructure. The Pakistan Crypto Council (PCC) is overseeing the project, and experts like Bitcoin mining researcher Daniel Batten have estimated that the country could potentially generate around 17,000 BTC annually if half of the allocated power is dedicated to mining operations.
The development in Pakistan has the potential to trigger regional competition, with neighboring countries like India potentially following suit. Pakistan’s crypto ambitions have been on the rise in recent months, with the government laying regulatory groundwork, appointing industry leaders like Binance founder Changpeng Zhao as advisors, and partnering with entities like World Liberty Financial (WLFI) to promote blockchain adoption.
Despite active loan agreements with the International Monetary Fund (IMF), Pakistan is forging ahead with its crypto initiatives. The country recently secured a $2.1 billion IMF package for economic recovery but remains committed to expanding its digital footprint. Other nations, such as El Salvador, Kenya, Ethiopia, and Argentina, have similarly embraced Bitcoin-related projects while under IMF programs.
The IMF has expressed concerns about the financial risks associated with exposure to Bitcoin, particularly when governments are directly involved in buying or mining the asset. However, countries like El Salvador have continued to push forward with their adoption plans, with the Central American nation now holding over 6,000 BTC in reserves.
Pakistan’s bold move towards supporting Bitcoin mining and AI data centers signals a significant shift in the country’s technological landscape. As it navigates the challenges and opportunities presented by digital assets, Pakistan is positioning itself as a key player in the global crypto economy.