Story Highlights
- Pakistan explores Bitcoin mining to use surplus electricity.
- Pakistan aims to reduce energy waste through mining.
- The government to regulate crypto instead of banning Bitcoin mining.
In a significant development, Pakistan is looking into Bitcoin mining as a way to use extra electricity and reduce the financial burden on its power sector. The Ministry of Energy engages with experts regarding industrial electricity tariff development for particular industries like cryptocurrency mining.
The power division plans to introduce new industrial ventures through their ongoing initiative which abstains from providing industry subsidies. The plan would enable Pakistan to handle its electric power excess by reducing payments needed to avoid electrical waste.
The operation of Bitcoin includes a significant amount of power usage. In fact, miners around the world spend 60-70% of their earnings on power bills. Pakistan holds the ability to attract miners because it produces surplus electricity. The industry depends on steady power availability which Pakistan needs to develop before it can successfully capitalize on this potential growth sector.
Pakistan to Regulate Bitcoin Mining Amid Global Restrictions
The Bitcoin mining operation requires extremely high levels of energy consumption to operate. Bitcoin operates using more than 130 terawatt-hours (TWh) of electricity throughout each year. Mining operations use an electrical power consumption that surpasses the combined electricity usage of Argentina and the Netherlands. Certain governments chose to act in two ways: creating specific electricity rates for miners or completely prohibiting mining activities.
China used to lead the world as the leading global hub for Bitcoin mining operations. The country issued a complete ban on the Bitcoin mining industry in 2021 because of environmental issues along with electricity supply problems. The Provincial Electricity Authority (PEA) in Thailand interrupted operations of a Bitcoin mining farm in Chonburi when they found the establishment was illegally obtaining power supply. The facility operators adjusted electricity metering systems to escape paying energy bills.
The Pakistani government chooses to establish rules for cryptocurrency control instead of banning the sector in the country. The government generates transparent regulations for digital assets to acquire investment and stimulate innovative developments. To support its initiative, the Pakistan Cryptocurrency Council (PCC) has been established. The newly formed body operates as a governance entity to monitor blockchain operations and digital asset management within Pakistani national borders.
Through its regulatory framework and using extra electricity for Bitcoin mining, Pakistan aims to attract international investors while establishing this new Web3 infrastructure.
