Authorities in the Khyber Pakhtunkhwa (KP) province of Pakistan has launched two state-owned bitcoin (BTC) mining farms. Pakistan, which used to have a harsh stance towards bitcoin and other cryptos just like India, is now embracing the revolutionary digital asset class with full arms.
Pakistan Begins Full-Scale Bitcoin Mining
While the cryptospace has been welcoming more and more institutional investors since the past year, it appears 2021 may just be the year that governments will start latching onto the fast-moving bitcoin train.
In the latest development, Khyber Pakhtunkhwa (KP), one of the four provinces in Pakistan, has announced the launch of two state-controlled bitcoin mining farms in the region, making it one of the very first nations in the world to achieve such a feat.
It’s worth noting that the KP Assembly unanimously passed a resolution to legalize cryptocurrency and bitcoin mining in the region last December. In the same vein, authorities also implemented legislation that gives residents the legal rights to launch their own digital currencies.
A Change of Heart
Pakistan, a country located in the northwest of the Indian subcontinent in South Asia, has been battling a serious economic crisis over the years, due to political instability, civil unrest and the COVID-19 pandemic has further fueled the raging flame.
In April 2018, shortly after India’s apex bank barred all financial institutions under its purview from servicing crypto-related businesses, the State Bank of Pakistan (SBP) announced the same draconian legislation.
However, with nations like the U.S., South Korea, and others now beginning to see bitcoin and other cryptoassets in a positive light, coupled with its economic hardship, Pakistan has latched onto the movement in a bid to alleviate its sufferings.
Last November, As reported that the Securities and Exchange Commission of Pakistan (SECP) had published a paper on private cryptocurrencies and called for comments from the public.
With bitcoin and other cryptoassets now legal in Pakistan, a nation of more than 220 million people, the forward-thinking move by the government could make the region a juicy hub for blockchain-focused businesses, potentially helping it to generate more revenue in addition to its bitcoin mining profits.