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IMF Rejects Pakistan’s 2000MW Bitcoin Mining Plan: Report
The International Monetary Fund (IMF) has rejected Pakistan’s proposal to allocate 2,000 megawatts of energy for cryptocurrency mining, citing concerns over market distortions and lack of prior consultation.
Pakistan had aimed to attract foreign investment by providing subsidies for crypto miners, as well as data centers and heavy industries. However, the IMF has expressed reservations regarding this plan.
A statement from the IMF revealed that it has rejected the proposal due to the potential risks it poses to the national power grid and the risk of creating an unfair market environment.
Pakistan’s government had planned to dedicate a significant amount of its energy capacity for crypto mining, which could potentially divert resources away from essential sectors such as healthcare, education, or infrastructure development.
The IMF has emphasized that any new initiatives must align with global standards and be free from distortions. The rejection comes amid concerns over the sustainability of Pakistan’s plans for a digital economy.
Pakistan had initially planned to allocate 2,000 megawatts of energy for crypto mining, as part of an effort to attract foreign investment in its renewable energy sector.
The country aims to position itself as a hub for cryptocurrency and blockchain innovation, and the IMF’s rejection may force the government to re-evaluate this strategy.
Source: cryptotale.org
