Key Takeaways:
Pakistan has pledged 2,000 megawatts of surplus electricity to bolster Bitcoin mining and artificial intelligence infrastructure.
This strategic move is anticipated to draw billions in foreign investments and create a plethora of high-skilled job opportunities.
A newly established regulatory authority, along with international collaborations, aims to position Pakistan at the forefront of cryptocurrency and AI innovation.
In a groundbreaking initiative, Pakistan has allocated 2,000 megawatts of excess electricity to power Bitcoin mining operations and AI development centers. This decision is a significant advancement in the country’s digital transformation strategy.
spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance, the initiative aims to lure foreign investment while establishing Pakistan as a vital player in the global tech economy.
According to a report by 24NewsHD TV Channel on May 25, the first phase of the plan will focus on channeling surplus power to infrastructure designed for cryptocurrency mining and AI initiatives.
Pakistan Eyes Billions in Investment from Bitcoin and AI Push
Finance Minister Muhammad Aurangzeb shared that the venture is projected to yield billions in capital investment and generate numerous high-skilled jobs across the nation.
He indicated that foreign businesses have already begun investigating partnership possibilities, with several delegations visiting Pakistan in recent times.
To encourage this shift, the Ministry of Finance has rolled out tax incentives for AI companies and eliminated import duties on Bitcoin mining equipment.
These measures form part of a larger framework aimed at fostering investor confidence and demonstrating regulatory readiness.
Bilal Bin Saqib, head of the Pakistan Crypto Council, described this initiative as a pivotal moment for the nation’s digital economy.
Saqib had suggested leveraging Pakistan’s untapped energy resources for cryptocurrency mining during a Council meeting on March 21, which included several key regulators and government officials.
He asserted that with effective regulation, Pakistan could become a regional leader in blockchain technology and AI advancements.
The subsequent phase of the strategy will incorporate renewable energy sources into these operations, reflecting broader sustainability commitments.
Officials emphasized that this methodology aims to harmonize technological advancement with environmental considerations.
As part of a comprehensive regulatory overhaul, the government has also approved the formation of the Pakistan Digital Assets Authority (PDAA).
This organization will be responsible for licensing, the tokenization of national assets, and the development of decentralized finance applications.
The PDAA will also play a key role in managing the monetization of surplus electricity through regulated Bitcoin mining.
Pakistan currently ranks ninth in the world in terms of cryptocurrency adoption, primarily driven by retail participation, as reported by Chainalysis.
Trump-Backed WLFI Signs LOI with Pakistan Crypto Council
In a related development, World Liberty Financial (WLFI), a decentralized finance project backed by the Trump family, recently signed a Letter of Intent (LOI) with the Pakistan Crypto Council to advance blockchain adoption and DeFi initiatives in the country.
The agreement was formed on April 26 during a high-profile meeting featuring WLFI co-founders Zak Folkman, Zach Witkoff, and Chase Herro, alongside Prime Minister of Pakistan and senior officials.
The collaboration seeks to expedite blockchain innovation by creating regulatory sandboxes for testing blockchain-based financial solutions.
The Finance Ministry of Pakistan is moving towards formal regulation of cryptocurrencies, which could dramatically alter the country’s traditionally cautious approach to digital assets.
The visiting delegation included prominent figures such as Gentry Beach Jr., a major investor who has committed $1 billion to initiatives in Pakistan, along with tech entrepreneur Nikita Goldsmith, blockchain consultant Alex Malkov, and Cosmic Wire CEO Jerad Finck.
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