Pakistan’s province Khyber Pakhtunkhwa is planning to set up two hydroelectric-powered pilots “mining farms” to capitalize on the international cryptocurrency market, a minister overseeing a new government crypto policy told Reuters on Wednesday.
The announcement was made because cryptocurrencies are gaining mainstream acceptance, with Bitcoin’s price reaching record levels as investors such as Elon Musk pour funds into it, and the first big US bank, Morgan Stanley, offering its wealth management clients access to bitcoin funds.
Pakistan has formed a federal committee to construct a new crypto policy, although India is planning to ban cryptocurrencies completely. The cost of the mining project has yet to be determined.
Zia Ullah Bangashan advisor to the provincial government on science and technology said, “People have already been approaching us for investment, and we want them to come to Khyber Pakhtunkhwa, earn some money and have the province earn from that as well.” Both mining and trading in cryptocurrencies currently exist in a legal grey area in Pakistan, though, and federal authorities would have to provide a clear path towards legalizing the sector before it could be formally opened to investors.