IMF warns: Pakistan's Bitcoin plan could worsen energy crisis!

IMF warns: Pakistan's Bitcoin plan could worsen energy crisis!

The International Monetary Fund (IMF) recently raised concerns about Pakistan's planned use of 2,000 megawatts of electricity for Bitcoin mining and AI data centers. This push was announced last week with the aim of attracting miners, blockchain and AI companies to Pakistan. The IMF is calling for urgent clarification of the legal framework for crypto mining and associated electricity allocations as Pakistan is currently facing energy shortages and significant fiscal challenges. Loud Cointelegraph The IMF was not consulted before the announcement and questions the legal situation of cryptocurrencies in Pakistan.

The IMF's concerns also concern the potential impact of the new initiative on electricity prices and the distribution of resources in the country. An IMF delegation is planning a separate meeting to discuss Pakistan's Bitcoin mining plan and evaluate further details. The power allocations come as part of a national strategy to integrate digital assets into the Pakistani economy.

Regulatory framework and digital assets

To support this plan, the Pakistan Digital Asset Authority (PDAA) was approved by the Ministry of Finance on May 21. This authority is intended to oversee the regulations for exchanges, wallets, stablecoins and DeFi platforms. In addition, the PDAA will also oversee the tokenization of national assets in accordance with international frameworks. Pakistan plans to create its first strategic Bitcoin reserve at Bitcoin Vegas 2025, indicating greater entrenchment of digital currencies.

Bilal bin Saqib, crypto advisor to Prime Minister Shehbaz Sharif, announced the upcoming launch of a national Bitcoin wallet. In addition, a proposal for a “National Crypto Council” was presented in February 2025 to develop a regulatory framework for digital assets. To support this legal process, Binance co-founder Changpeng Zhao was appointed as an advisor to the council in April to provide advice on crypto regulations and blockchain infrastructure.

Cryptocurrencies at a glance

Cryptocurrencies based on blockchain technology are digital or virtual currencies that use cryptography for security. They enable direct transactions between users without intermediaries, encouraging peer-to-peer trading. Loud XTB Over 10,000 cryptocurrencies will be tradable by the end of 2024, with Bitcoin, Ethereum and Ripple being among the best known.

An overview of some well-known cryptocurrencies:

• Bitcoin (BTC): Die erste und bekannteste Kryptowährung, geschaffen 2009, oft als digitales Gold bezeichnet.
• Ethereum (ETH): 2015 gegründet, ermöglicht die Entwicklung von Smart Contracts und dApps.
• Tether (USDT): Eine Stablecoin, die an den US-Dollar gebunden ist, um gegen Volatilität abzusichern.
• Ripple (XRP): Introduziert 2012, erleichtert grenzüberschreitende Zahlungen und verwendet einen Konsensmechanismus.
• Weitere Kryptowährungen wie Solana, Cardano und Dogecoin erweitern das Spektrum digitaler Vermögenswerte erheblich.

The dynamic crypto market, which is open 24/7, presents both opportunities and risks for investors. Factors such as limited supply and general economic conditions significantly influence pricing. Given the current political and economic developments in Pakistan, the legal classification and implementation of a clear regulatory framework for cryptocurrencies could be crucial for the future of the market in the region.