Bitcoin ($BTC) mining is an extremely energy-intensive yet profitable process. Thus, the Pakistani government is taking steps towards attracting Bitcoin mining operators to absorb surplus electricity, without involving any subsidy. This will ultimately lessen the financial burden on the power sector. Awais Leghari, Federal Minister for Energy “Power Division” of Pakistan, has started consulting stakeholders to set up a specialized electricity tariff for emerging organizations, specifically for cryptocurrency mining.
This move comes at a time when Pakistan is planning to legalize cryptocurrencies. This move further strengthens the speculations that Pakistan will soon regulate digital assets.
Pakistan Power Division and Crypto Council (PCC) Joining Hands to Attract BTC Mining Operators
As worldwide crypto miners were hoping to profit from Pakistan’s surplus power, reports say that Power Minister Awais Leghari and Bilal Bin Saqib, chief executive of PCC, recently met to explore the chances. On Friday, Finance Minister Muhammad Aurangzeb presided over the council’s meeting. According to an official statement, Mr. Saqib proposed the idea of using Pakistan’s excess power for Bitcoin mining at the conference, which might transform Pakistan’s debts into assets.
Federal secretaries for the ministries of Information Technology and Law were also present at the meeting, along with State Bank Governor Jameel Ahmad and Chairman Akif Saeed of the Securities and Exchange Commission of Pakistan. During the meeting, Mr. Saqib presented the council with a thorough vision and goal, and the emphasis was on Pakistan’s unrealized potential in the cryptocurrency area. He shed light on the existing crypto scene in Pakistan and the obstacles that are preventing cryptocurrencies from being widely used.
PCC To Play a Pivotal Role in the Execution of Bitcoin Mining Plan
According to Pakistan’s finance minister, the PCC would play a pivotal role in the country’s digital asset future. He expressed his optimism that the council will bring together all the necessary parties and regulatory agencies under one roof. The conference resolved to gain insight from international standards and ensure that its operations and revenue streams are solidly grounded in the local context. The committee concurred on the necessity for a clear regulatory framework, laws, and certification regimes for protecting consumers, Bitcoin mining, and a national blockchain strategy.
Bitcoin Mining-A highly Energy-Intensive Process
As per estimates, upto 60 to 70% of the total expense of Bitcoin miners is on their electricity costs. Pakistan has surplus energy and is an attractive field to leverage Bitcoin mining to absorb that surplus electricity. It is because Pakistani’s are shifting to solar energy and the national grid has surplus energy due to this. It only needs to be more careful of the stable supply. Bitcoin mining costs a lost of energy worldwide, annually consuming over 130 TWh of electricity. This surpasses the entire power consumption of countries like the Netherlands and Argentina.
Summing up, the plan of the Pakistani Government to explore Bitcoin mining to absorb surplus electricity will successfully reduce the financial burden on the power sector. Power ministry and PCC are working tirelessly to execute the plan, with PCC playing the pivotal role.