Pakistan’s Crypto Council Proposes Bitcoin Mining to Utilize Excess Energy
March 21, 2023
In a significant move for the cryptocurrency sector in Pakistan, the newly established Crypto Council has introduced a proposal to mine Bitcoin using excess runoff energy. This initiative was announced during the council’s inaugural meeting, which welcomed prominent figures from across the nation’s financial landscape, including the Governor of the Bank of Pakistan and the Chairman of the Securities and Exchange Commission (SECP).
The proposal marks a notable shift in the Pakistani government’s approach to cryptocurrencies, a sector previously viewed with skepticism and subject to calls for outright bans. Bilal bin Saqib, the CEO of the Pakistan Crypto Council, expressed optimism in a social media post prior to the meeting, stating, "Pakistan is done sitting on the sidelines! We want Pakistan as the leader in blockchain-powered finance." He highlighted the potential of the country’s young population, noting that approximately 60% are under the age of 30 and that the labor force is increasingly versed in web3 technologies.
This strategic focus on utilizing surplus energy for Bitcoin mining aligns with growing global trends that seek environmentally sustainable methods of cryptocurrency production. By leveraging excess energy, Pakistan could tap into a burgeoning market while positioning itself as a competitive player in the field of blockchain technology.
Market Pressures Expected from Trade Wars Until April
Meanwhile, analysts are cautioning that the crypto markets may face continued pressure due to an impending trade war. Nicolai Sondergaard, a research analyst from Nansen, indicated that despite a series of positive developments in the cryptocurrency space, tariffs could create uncertainty in risk assets. Specifically, President Trump’s proposed reciprocal tariff rates are slated to take effect on April 2, a situation that could hamper market direction until these trade-related issues are resolved.
Sondergaard noted that depending on how the situation unfolds, there could be a potential catalyst for positive market movement between April and July, should the trade war concerns subside.
Tether Engages Big Four Accounting Firm for Financial Audit
In further developments within the crypto space, Tether, one of the leading stablecoin issuers, is reportedly in discussions with a prominent Big Four accounting firm to conduct its first comprehensive financial audit. This move aims to assure investors and regulators that its USDT stablecoin maintains a 1:1 backing with US dollars, a concern that has been exacerbated by speculation surrounding liquidity crises similar to the ones experienced by FTX.
Tether CEO, Paolo Ardoino, emphasized the importance of this audit, expressing confidence that a pro-crypto administration under President Trump may facilitate a more streamlined auditing process. “If the President of the United States says this is top priority for the US, Big Four auditing firms will have to listen,” Ardoino stated. Currently, Tether releases quarterly reports but lacks a full independent annual audit to provide increased assurance to stakeholders.
As the crypto landscape continues to evolve, these developments in Pakistan and greater market trends underscore a transformative period for digital currencies, with significant implications for regulatory frameworks and market practices worldwide.
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