Pakistan to designate 2,000 MW for Bitcoin mining and artificial intelligence data facilities.

Pakistan is set to designate 2,000 megawatts of its electricity supply for the purposes of Bitcoin mining and data centers focused on artificial intelligence.

The Pakistan Crypto Council (PCC), which is managing this initiative, has indicated that three coal-powered power plants, currently operating at merely 15% of their potential, will be adapted for this new enterprise.

This move forms part of a larger governmental strategy aimed at legalizing cryptocurrency, attracting foreign investments, and enhancing technological infrastructure across the nation.

Daniel Batten, a researcher in Bitcoin mining, noted that if half of the allocated electricity is utilized for mining purposes and operations are conducted under optimal conditions, the country could potentially yield approximately 17,000 BTC on an annual basis.

He also mentioned that this initiative might spark competition in the region, with the possibility of India taking similar steps.

Pakistan’s aspirations in the cryptocurrency sector have significantly intensified, showcased by various key initiatives and projects rolled out in recent months.

The government has begun to establish regulatory frameworks for this growing sector, appointed Changpeng Zhao, the founder of Binance, as an advisor to the PCC, and collaborated with World Liberty Financial (WLFI), a DeFi venture associated with Donald Trump, to foster blockchain engagement.

IMF Concerns for Pakistan

Pakistan’s approach aligns it with several other nations that are adopting digital currencies despite existing loan arrangements with the International Monetary Fund.

Recently, the country secured a $2.1 billion loan from the IMF aimed at aiding economic recovery, all while persisting in its plan to expand its cryptocurrency endeavors.

Mathew Sigel, the research head at VanEck, highlighted that nations like El Salvador, Kenya, Ethiopia, and Argentina have adopted similar tactics, developing Bitcoin-related projects even as they participate in IMF programs.

The IMF has consistently cautioned that engagement with Bitcoin could lead to financial vulnerabilities, especially when governments are involved in direct purchases or mining activities of the digital currency.

Nevertheless, these countries have not withdrawn their plans for adoption. El Salvador is a prominent example, having continued to grow its Bitcoin assets despite IMF objections, accumulating over 6,000 BTC valued at approximately $678 million.