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IMF Blocks Pakistan’s Crypto Mining Subsidy—Bitcoin Reserve Plans in Limbo
Pakistan’s ambitious plans for a government-backed Bitcoin reserve and crypto-friendly policies have hit a major roadblock, as the International Monetary Fund (IMF) has rejected the country’s proposal to offer discounted electricity rates for cryptocurrency mining.
The IMF’s decision is a significant setback for Pakistan’s vision of becoming a global hub for data centers and digital infrastructure. The plan aimed at creating jobs, attracting foreign investment, and strengthening the country’s digital connectivity by using its robust digital connectivity network.
Pakistan’s government had proposed offering subsidized electricity to energy-hungry sectors like crypto mining, heavy metals, and other industries that require large amounts of power. However, the IMF has raised concerns about the legal implications of such a move, citing potential distortions in the energy market and risks to the already strained power grid.
Pakistan’s digital ambitions were further accelerated with the announcement of a government-backed Bitcoin reserve plan earlier this year. The initiative aimed at supporting the growth of blockchain innovation and decentralized finance (DeFi) sectors.
Source: www.crypto-news-flash.com
