IMF Blocks Pakistan’s Plan to Subsidize Crypto Mining Electricity

The International Monetary Fund (IMF) has declined a proposal from Pakistan to offer subsidized electricity rates to cryptocurrency mining operations. This decision arose during discussions between Pakistan and the IMF regarding a financial bailout package. The IMF emphasized concerns regarding the considerable energy consumption linked to cryptocurrency mining and its potential strain on Pakistan’s power grid. Moreover, the IMF raised apprehensions about the regulatory facets of cryptocurrency mining, including the risks of money laundering and the financing of terrorism. This development is a setback for Pakistan’s aspirations to cultivate a cryptocurrency mining industry. The Pakistani government has been urged to investigate renewable energy sources to power cryptocurrency mining ventures, thereby reducing the burden on the national power grid.