The government of Khyber Pakhtunkhwa (KP), the third largest of Pakistan’s four semi-autonomous provinces, is setting up two state-backed bitcoin mining companies, local media reported last week.
Ziaullah Bangash, adviser to the KP Prime Minister for Science and Information Technology, said the provincial parliament has passed a bill allowing the KP government to use its own money to set up the mining facilities.
The province, which has since legalized crypto mining, will start mining bitcoin (BTC) for profit, BOL News, a local media organization, reported. No details were given about the capacity of the mining companies, nor about the resources the state intends to invest in the project. This particular province has previously advocated friendly crypto laws in Pakistan.
According to Bangash, the KP meeting has also adopted a separate certificate of no objection that allows individuals to mine cryptocurrency and issue their own digital assets. The development coincided with the launch of a private bitcoin mining company by Waqar Zaka, a longtime crypto enthusiast who has worked in the development of Pakistan’s crypto industry.
“After years of struggle, I am launching the largest crypto mining farm in KPK where all of you can invest and earn,” Zaka said in a tweet. He thanked Bangash for his legal support. Answering, Bangash stated that “in the future the help of Waqar Zaka will be sought” in the crypto mining plans of the KP administration.
Profits from bitcoin mining could help support Pakistan’s ailing economy, but KP must first overcome the country’s long-running electricity crisis. Pakistan is experiencing severe electricity shortages and power cuts are common.
Last Saturday, the entire country was thrown into darkness, the Financial Times reports. The authorities blamed the power outage due to a “technical error” at one of the country’s main power plants in the south. Pakistan only began to restore power to bits on Sunday.
Now BTC mining – the process of creating new bitcoins using sophisticated, supercomputers – is not only an energy-intensive endeavor, but also one that requires a consistent power supply. Located in northwestern Pakistan, a mountainous, cool region along the Afghanistan border, KP may have the best weather for bitcoin mining. But will it have enough energy to support a profitable operation?
What do you think of the Khyber Pakhtunkhwa government’s bitcoin mining plans? Let us know in the comments below.
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