Pakistan’s Khyber Pakhtunkhwa province plans to build pilot hydroelectric mining farms to take advantage of a rising global cryptocurrency market, said a minister overseeing the government’s new cryptocurrency policy. Agency Reuters.
The announcement comes as cryptocurrencies are gaining mainstream acceptance, as the price of Bitcoin has reached record levels after investors such as (Elon Musk) poured money into it, along with the first major US bank, Morgan Stanley, offered its customers access to money. Bitcoin.
Cryptocurrency mining farms include large investments in computer data centers that require massive amounts of energy.
And formed Pakistan Federal commission to craft a new cryptocurrency policy, even as neighboring India plans to ban cryptocurrencies altogether.
The cost of the mining project has not yet been determined(Zia Ullah Bangash), advisor to the provincial government on science and technology, said: People are starting to contact us for investment, and we want them to come to Khyber Pakhtunkhwa, and make some money and make the province earn from that too.
Mining and trading in cryptocurrencies exist in a legal gray area in Pakistan, but then federal authorities must provide a clear path toward legalizing the sector before it is officially opened to investors.
The State Bank of Pakistan said in 2018: Cryptocurrencies are not a legal offering and the regulator has not authorized anyone to transact with them in the country.
Pakistan is also currently on the Global Financial Action Task Force gray list, and one of the areas that the Global Money Laundering Monitor has asked Islamabad to better regulate is cryptocurrencies.
However, cryptocurrency mining and trading is booming in Pakistan with apps from platforms such as Binance and Coinbase being among the most popular downloads in the country, according to web analytics company SimilarWeb.
Pangash said: It is our government that is not currently involved. People all over Pakistan are working on this matter, either mining or trading in cryptocurrencies and they earn income from it.
He added: We hope to raise this matter to the government level so that things can be controlled and online fraud or other scams are prevented.