Pakistan eyes surplus power use for crypto mining: report

Pakistan is developing special electricity rates to attract cryptocurrency extraction operations as part of a strategy to use the country’s excess electricity production capacity.

According to a report of DawnThe Power division consults various stakeholders to create attractive electricity rates for these industries without introducing subsidies. The initiative plans to use excess electricity production while reducing capacity payments.

This approach could use cryptocurrency minors, who generally spend 60 to 70% of their electricity costs. The current surplus situation in Pakistan offers potential competitive advantages.

The Minister of Power Awais Leghari recently met Bilal Bin Saqib, director general of the new Pakistan Crypto Council (CCP), to discuss opportunities for global crypto minors to take advantage of the excess electricity in Pakistan. This was followed by the inaugural meeting of the PCC chaired by the Minister of Finance Muhammad Aurangzeb and assisted by key financial regulators.

The Pakistani council discusses the potential of Crypto

During the meeting, SAQIB presented a vision to “take advantage of the excess electricity of Pakistan for Bitcoin (BTC) Mining, potentially transforming the country’s responsibilities into assets. »»

The council discussed the unexploited potential of Pakistan in the cryptocurrency space. They also identified regulatory clarity as a key requirement to unlock the full potential of the sector.

The Council has agreed to learn of global practices while ensuring that commercial and income models are adapted to local conditions. They also discussed the development of regulatory frameworks, legislation and license regimes for consumer protection, the extraction of blockchain and a national blockchain policy.

The approach of Pakistan to the extraction of cryptocurrencies comes when various countries have adopted different approaches to the energy industry. China, once the world center for Bitcoin exploitation, prohibited practice in 2021, citing environmental concerns and current shortages.

Kazakhstan initially welcomed the extraction of cryptography, but then imposed higher electricity prices and taxes due to energy shortages. El Salvador, the first country to adopt Bitcoin as a tender, provides minors with low -cost geothermal energy of volcanoes.