The IMF does not like it too much. On May 21, Pakistan announced the creation of a Bitcoin strategic reserve, following the example of the United States. The country has also unveiled a plan to allocate 2,000 megawatts of electricity at the Bitcoin mining and artificial intelligence data centers. However, this decision aroused concerns within the International Monetary Fund (IMF), which requires clarification on the legality of this initiative.
- Pakistan has announced the creation of a Bitcoin strategic reserve and the allocation of 2,000 megawatts of electricity for Bitcoin’s mining, arousing the concern of the IMF.
- The International Monetary Fund wondered about the legality of this initiative and its potential effects on the distribution of resources in a country already plagued by energy shortages.
The IMF worked out against Pakistan’s plan for Bitcoin’s mining
THE International Monetary Fund (IMF) expressed his concerns about Pakistan’s decision to allocate 2,000 megawatts of electricity Bitcoin mining and artificial intelligence data centers. This initiative aims to attract autonomous minors, blockchain companies and AI companies in the country.
However, according to a article of the local press, the IMF has raised questions about the legality of this decision And asked for urgent clarifications at the Ministry of Finance. The IMF is also concerned about the potential repercussions on electricity prices and the distribution of resources in a country already confronted with chronic energy shortages. And yes, when it comes to Bitcoin, the IMF is never far away!
Pakistan defends its digital strategy
Faced with questions from the international body, the Pakistan defends its digital strategy. The government says this electricity allowance is part of a broader national strategy aimed at integrating digital assets into the country’s economy.
The Ministry of Finance has also approved the creation of Pakistan Digital Asset Authority (PDAA)an authority responsible for regulating the exchanges of cryptocurrencies, digital wallets, stablecoins and DEFI platforms. The PDAA will also oversee the tokenization of national assets in accordance with international executives such as those of Financial action group (GAFI).
While the IMF continues to ask questions, Pakistan remains determined to move forward with its plan. The country hopes that this initiative will attract foreign investments and stimulate the digital economy. However, it remains to be seen how these discussions will take place and if Pakistan can convince the IMF of the viability of his project.