Crypto in Pakistan: A Revolution Yet to Take Off

Pakistan recently announced a plan to allocate 2,000 megawatts (MW) of electricity for Bitcoin mining and AI data centers. But many experts believe this move lacks planning, regulation, and common sense.

Here’s the problem: Cryptocurrencies like Bitcoin are not legal in Pakistan. The State Bank of Pakistan (SBP) has not approved Bitcoin or any other crypto as legal money. Still, the government is pushing forward with mining plans without any legal framework in place.

A bill called the Pakistan Digital Assets Authority Bill was supposed to create crypto laws, but it hasn’t been approved yet. Until that happens, this so-called “crypto revolution” can’t be taken seriously.

Big Plans, No Clear Answers

The government has also set up a new body called the Pakistan Crypto Council, but it hasn’t shared how the country will regulate digital assets. Important questions remain unanswered:

• Who is in charge of managing these mining centers?

• What is the legal status of crypto in Pakistan?

• Has the SBP approved these mining projects?

• How much will the mining infrastructure cost?

• How will it be paid for or financed?

• Is there a plan if Bitcoin prices fall?

• Have the energy trade-offs been studied in a country with power shortages?

Is Bitcoin Mining a Smart Choice?

Bitcoin mining requires expensive equipment, fast internet, and lots of cheap electricity. Even rich countries with more resources have given up on mining because it's often unprofitable. Equipment gets outdated fast, and profits depend on market timing—which is risky.

If Bitcoin prices drop, these projects could fail quickly, just like they did in Kazakhstan, Iran, and parts of the USA.

Crypto Is Moving Forward—But Not Through Mining

The global crypto industry has moved beyond just mining. Now, major players are focusing on:

• Building developer tools

• Creating real-world crypto apps

• Growing full blockchain ecosystems

Pakistan should be focusing on these areas if it wants to take crypto seriously. So far, the only positive move has been Binance founder Changpeng Zhao joining the Pakistan Crypto Council as an advisor.

What Pakistan Really Needs

To move forward, Pakistan needs:

1. Clear regulations and SBP approval

2. A working Digital Assets Authority Bill

3. Experts who understand crypto policy and technology

4. A plan to manage the cost and risks of mining

5. Partnerships with reliable global crypto and AI firms

6. A clear exit strategy if the market drops

7. Analysis of the environmental impact and power grid stress

Conclusion

The idea of making Pakistan a crypto hub sounds exciting. But without proper rules, knowledge, and oversight, it’s just an empty promise. Before investing so much power and money into Bitcoin mining, the government must answer some tough questions and focus on smart, safe growth.