The government of Khyber Pakhtunkhwa (KP), one of Pakistan’s four semi-autonomous provinces, has announced on launching two state-owned Bitcoin mining farms, as per local media reports. No additional details were provided on the farm's mining capacity. The total amount of funds that were involved in setting up the farms were also not given. Pakistan is the latest country to turn towards crypto in order to revive its economy, a move earlier adopted by Iran.
Khyber Pakhtunkhwa (KP) of Pakistan has previously legalized cryptocurrency mining. The government of that region will now mine Bitcoin (BTC) for profits. This is the first case where a government will be using its own funds to mine Bitcoin.
Ziaullah Bangash, advisor to the chief minister of KP on Science and Information Technology said that the provincial parliament had passed a bill that has enabled the government of KP for launching and issuing its own cryptocurrency for setting up the Bitcoin mining facility. A separate no-objection certificate was also issued to private entrepreneurs for issuing their own cryptocurrencies.
The news comes amid one of Pakistan's first privately-owned mining farms also being launched by Waqar Zaka, a crypto enthusiast working in the Pakistani crypto scene. Zaka tweeted on hearing the news:
"After years of struggle, I am launching the biggest Crypto mining Farm in KPK where you all can invest & earn."
In 2020, officials from the KP Assembly, led by Bangash, passed a resolution to the country’s central government calling for legalizing Bitcoin mining and ownership across Pakistan.
Situated in north-western Pakistan, KP Province might provide a better environment for Bitcoin mining given its naturally cool, mountainous environment favours.
A country turning to Bitcoin mining for fueling profits and reviving the ailing economy isn’t something new. Last year, Iran’s central government announced purchasing Bitcoin from Iranian miners to fund its imports and facilitating international trade.