Pakistan is seeking to capitalize on its surplus electricity production by offering competitive energy tariffs to Bitcoin miners and blockchain data centers, a move aimed at reducing waste and promoting a more orderly digital asset sector.
According to Dawn newspaper, these tariffs will be set based on market prices without relying on government subsidies, allowing the government to reduce payments to energy producers for unused electricity.
https://x.com/ki_young_ju/status/1838140712736711110?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1838140712736711110%7Ctwgr%5E0c3beb15fcd67c5bdad71fd45781d4435f1094ce%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Farab-btc.net%2Fpakistan-eyes-bitcoin-mining%2F
Bitcoin mining is one of the most energy-intensive sectors, with Statista data indicating that the network's total consumption ranges between 137 and 175 terawatt-hours annually. Miners typically allocate between 60% and 70% of their revenue to paying electricity bills, making it an ideal sector to absorb Pakistan's energy surplus.
In this context, Pakistan's Minister of Energy, Owais Leghari, met with Bilal Bin Thaqib, CEO of the Pakistan Cryptocurrency Board, to discuss opportunities to attract global cryptocurrency miners to invest in the country.
Finance Minister Muhammad Aurangzeb also chaired the inaugural meeting of the council, where they discussed ways to develop a regulatory framework for digital assets to support domestic growth and boost foreign investment flows.
Countries have different strategies for dealing with cryptocurrency mining.
In Russia, the availability of cheap energy sources, such as natural gas and hydropower, has encouraged mining. In August 2024, President Vladimir Putin signed a law allowing registered companies and individuals to participate in mining operations.
The United States has adopted a supportive approach by regulating mining in states such as Texas and Wyoming, with a focus on the use of renewable energy sources such as wind and solar power.
In contrast, China imposed a blanket ban on Bitcoin mining in 2021, but CryptoQuant data indicates that 55% of the global Bitcoin hash rate still comes from underground mining operations within the country.
El Salvador is one of the countries most adopting Bitcoin, making it legal tender and relying on geothermal energy from volcanoes for mining.
However, the IMF has demanded that the Salvadoran government stop mining Bitcoin as part of the terms of the $1.4 billion loan agreement.