Pak to use electricity equivalent to 55% of Lahore’s total demand to power Bitcoin reserve
Pakistan, a country known for its electricity and water scarcity, has taken a surprising step by announcing the formation of its first Bitcoin reserve. The country’s newly-appointed crypto chief, Bilal Bin Saqib, revealed that the reserve will require a staggering 2,000 megawatts of electricity in its first phase. To put this into perspective, this is equivalent to over 55% of Lahore’s total electricity demand in 2023.
The announcement was made at a recent event in the United States, where Saqib, the chairman of the Pakistan Crypto Regulatory Authority, showcased the country’s plans to tap into the world of cryptocurrencies. Pakistan’s decision to invest in Bitcoin is a significant one, considering the country’s struggles with power outages and water shortages. The news has raised concerns among experts, who are questioning the feasibility of such a move.
According to data available with the Lahore electricity supply division, the city’s total electricity demand in 2023 stands at around 3,600 MW. This means that the 2,000 MW required to power the Bitcoin reserve would account for more than half of the city’s total electricity demand. This is a staggering amount, especially considering that Lahore, like the rest of Pakistan, is already struggling with power outages.
Pakistan’s decision to invest in Bitcoin is part of its broader strategy to diversify its economy and reduce its reliance on traditional sources of revenue. The country’s economy has been facing significant challenges in recent years, including a severe debt crisis and a stagnant economy. As a result, the government is looking for new sources of revenue and has turned its attention to the world of cryptocurrencies.
The formation of Pakistan’s first Bitcoin reserve is seen as a significant step towards achieving this goal. The reserve is expected to be used to stabilize the country’s currency, the Pakistani rupee, and to provide a new source of revenue for the government. The news has been met with excitement among crypto enthusiasts, who see Pakistan’s move as a major boost for the country’s economy.
However, not everyone is convinced that Pakistan’s move is a wise one. Experts have raised concerns about the feasibility of powering the Bitcoin reserve, given the country’s electricity and water scarcity. They point out that Pakistan’s energy infrastructure is already overstretched, and that the additional demand for electricity could exacerbate the country’s power outages.
Moreover, the cost of powering the Bitcoin reserve is likely to be high, which could put a strain on the country’s already limited resources. The cost of electricity in Pakistan is already relatively high compared to other countries, and the additional demand for electricity could drive up costs even further.
Pakistan’s decision to invest in Bitcoin has also raised questions about the country’s regulatory framework for cryptocurrencies. The country’s crypto regulatory authority, led by Saqib, has been working to establish a framework for the use of cryptocurrencies in Pakistan. However, experts have raised concerns that the country’s regulatory framework is still in its infancy and may not be robust enough to protect investors.
In conclusion, Pakistan’s decision to use electricity equivalent to 55% of Lahore’s total demand to power its Bitcoin reserve is a significant one that has raised concerns among experts. While the move is seen as a bold step towards diversifying the country’s economy, it is also a major challenge that requires careful consideration. The country’s electricity and water scarcity, as well as the high cost of powering the reserve, are major concerns that need to be addressed.
As Pakistan moves forward with its plans to establish a Bitcoin reserve, it is essential that the country’s regulatory framework for cryptocurrencies is strengthened and that the country’s energy infrastructure is upgraded to meet the additional demand for electricity. Only then can Pakistan’s bold move be seen as a success and a major boost for the country’s economy.
