Pakistan will allocate 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power bitcoin mining and AI data centres, its finance ministry said.
The allocation is part of Islamabad's plans to use its surplus electricity to bitcoin mining and AI data centres.
Pakistan's energy sector is grappling with challenges, including high electricity tariffs and surplus generation capacity.
In the early days, no one quite knew what to do with the bitcoin they were mining. On May 18, 2010, Hanyecz tried an experiment and posted a message offering 10,000 bitcoins, now worth $1.1B, for pizza.
The rapid expansion of solar energy has further complicated the landscape, as more consumers turn to alternative energy sources to mitigate high costs.
The initiative is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body, which is part of a broader strategy to monetise surplus electricity, create high-tech jobs, and attract foreign investment, the ministry said on Sunday.
The allocation is the first phase of a broader, multi-stage digital infrastructure roll-out, it added.
The rate of cryptocurrency adoption has jumped by 880 percent in the last year as Vietnam, India and Pakistan have become the fastest crypto adopters.
