Pakistani province doubles down on plans to build cryptocurrency mining farms
A province in Pakistani is building two pilot cryptocurrency mining farms to capitalize on the bullish cryptocurrency market that has seen the prices of assets such as bitcoin surpass $60K.
According to a Minister who spoke to Reuters, Pakistani’s province of Khyber Pakhtunkhwa, also known as KP, has created a committee to oversee the development of a new crypto policy as well as the mining farm.
Committee holds its first meeting
The newly-formed committee held its first meeting on March 17, according to a series of tweets posted by Zia Ullah Bangash, an advisor to the provincial government on science and technology.Bangash said serious steps are being taken regarding cryptocurrency mining farms. He further highlighted that the city is conducive for this activity due to its weather and “innumerable hydropower potentials.”
The committee has not yet determined the cost of the mining operation, which could run into millions given that specialized equipment is required for the activity.
The province has been approached by a number of people for investment purposes and this could help KP generate revenue.
“People have already been approaching us for investment, and we want them to come to Khyber Pakhtunkhwa, earn some money and have the province earn from that as well,” said Bangash.
This is not the first time the province has discussed cryptocurrency mining.
State-backed cryptocurrency mining
Cryptonary reported in January that the province was planning to build two bitcoin mining farms sponsored by the government.At the time, Bangash said that the government felt that it needed to be pro-active to avoid being left behind when it comes to crypto mining.
Pakistani's economy has slowed down and crypto mining could be a source of income for the country.
Other countries have also considered bitcoin mining as a revenue stream. Sanction-hit Iran, which lost revenue from oil exports, tried to raise money from cryptocurrency mining despite cracking down on private miners.
However, Pakistani might have to take a different approach if it wants to open the industry to investors.
A new regulatory approach
Cryptocurrency trading and mining currently exist in regulatory grey areas. Still, these activities are thriving in the country.“It’s really just our government that is not participating right now, people all over Pakistan are already working on this, either mining or trading in cryptocurrencies and they are earning an income from it,” Bangash said.
“We are hoping to bring this to a government level so things can be controlled and online fraud or other scams can be prevented.”
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