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IMF Blocks Pakistan’s Crypto Mining Subsidy—Bitcoin Reserve Plans in Limbo
The International Monetary Fund (IMF) has put a halt to Pakistan’s proposal to offer discounted electricity rates for Bitcoin mining and other energy-intensive sectors, leaving the country’s ambitious plans for a government-backed Bitcoin reserve in limbo.
According to sources, IMF officials expressed significant concerns over the potential risks associated with this initiative. The global lender deemed the move as potentially distorting energy markets and straining an already overloaded power grid. Furthermore, they emphasized the need for consultation and transparency before implementing such a policy.
Pakistan’s government had planned to offer discounted electricity rates to Bitcoin mining operations in order to attract investment and support digital growth. The move was part of its broader strategy to become a crypto-friendly nation. This plan aimed to position Pakistan as an attractive destination for digital asset-based industries, leveraging the country’s robust digital connectivity infrastructure.
The proposal has been sent back to the drawing board, with government officials stating that it will now be reviewed by the World Bank. The IMF’s rejection of this initiative throws a wrench in the country’s plans to develop a Bitcoin reserve and expand its crypto-friendly environment.
Pakistan has been actively exploring opportunities to boost its economy through cryptocurrency-based initiatives. Earlier this year, the government launched the Pakistan Digital Assets Authority (PDAA) and brought on former Binance CEO Changpeng Zhao as a strategic advisor. Moreover, an agreement with the World Leading Finance Initiative (WLFI) was signed in April, outlining plans for collaboration on blockchain innovation, expanding DeFi, and promoting stablecoin adoption across the nation.
Pakistan’s Bitcoin reserve plan, which was deemed crucial to its crypto-friendly vision, now finds itself at risk of being put on hold indefinitely.
Source: www.crypto-news-flash.com
