Pakistan’s recent efforts to position itself as a hub for cryptocurrency and blockchain innovation appear disjointed and underdeveloped, raising serious questions about the country’s policy direction and understanding of the evolving global crypto landscape. Despite ambitious announcements—like the allocation of 2,000 megawatts of electricity to Bitcoin mining and artificial intelligence data centers—the foundational framework to support such a strategy is glaringly absent.
At the core of the confusion is the lack of regulatory clarity. The State Bank of Pakistan (SBP) has repeatedly stated that it does not recognize Bitcoin or any cryptocurrency as legal tender. Yet, government-backed plans continue to emerge involving large-scale crypto infrastructure projects, including mining operations. These developments are being rolled out in the absence of formal approvals from the SBP or any coherent legal policy for digital assets.
The Pakistan Digital Assets Authority Bill, which was expected to define the contours of the country’s approach to cryptocurrencies and blockchain, has not materialized. Without this legislation, the entire ecosystem remains in limbo, with no structured oversight for mining operations, no regulatory guidance for exchanges, and no protection for consumers. The recently established Pakistan Crypto Council, while a step in the right direction, has not yet provided a clear legal or operational framework for the digital asset industry.
This policy vacuum leads to significant contradictions. For instance, the allocation of national energy resources to Bitcoin mining raises questions about national priorities. Bitcoin mining is known to be extremely capital-intensive and environmentally taxing. It requires expensive infrastructure, fast-depreciating hardware, and operates on speculative market dynamics. Even countries with surplus cheap energy have evaluated the cost-benefit ratio and chosen to stay out of or exit large-scale mining projects.
Given these factors, many industry observers are left wondering why Pakistan is pushing ahead with mining instead of focusing on integrating into mature parts of the crypto space—such as blockchain development, decentralized finance (DeFi) infrastructure, or real-world use cases of digital assets. The concern is that these initiatives are being led by individuals and decision-makers with limited understanding of how the crypto world functions in 2025.
From a broader industry perspective, the global crypto focus has already shifted. Today, major crypto players are investing in ecosystem development, regulatory compliance, user protection, and creating real-world utility for digital assets. Mining, while still relevant, is no longer the flagship sector it once was. By centering its strategy on mining, Pakistan risks not only being out of sync with global trends but also potentially wasting valuable resources on a model that has already been abandoned by more experienced markets.
Recent public announcements and press releases regarding the country’s crypto ambitions seem to rely on outdated narratives. The messaging resembles recycled rhetoric from previous crypto bull runs, rather than reflecting the realities of the current digital finance era. Officials and advisors promoting such narratives may lack even basic operational knowledge, such as how to set up or use a digital wallet, which further undermines policy credibility.
Still, there are glimmers of hope. A notable development was the recent appointment of Binance founder Changpeng Zhao as an advisor to the Pakistan Crypto Council. His involvement, if leveraged effectively, could bring in much-needed expertise and direction. However, without a serious commitment to passing regulations and building institutional knowledge, even high-profile advisors may have limited impact.
Until Pakistan enacts comprehensive digital asset legislation and grounds its crypto strategy in current global realities, the so-called crypto revolution in the country will remain more aspirational than actual. For meaningful progress, regulatory clarity, technical education, and informed policymaking must take center stage.