Pakistan’s Crypto Landscape
In a recent interview with Cointelegraph, Bilal Bin Saqib, the state minister for crypto and blockchain in Pakistan, identified the country’s youthful population as a key driver for the rapid adoption of Bitcoin, positioning Pakistan as a leader compared to developed nations. He explained that a shifting global perspective on cryptocurrency is fostering this growth, noting that Pakistan initiated its regulatory framework for crypto in November 2024.
Youthful Demographics Driving Adoption
Bin Saqib highlighted that Pakistan boasts 40 million crypto wallets, ranking it among the top five countries in adoption rates. With a staggering population of 250 million and around 70% under the age of 30, he remarked that if the youth of Pakistan were considered as an independent nation, they would be the ninth or tenth largest globally by population.
“The median age in Pakistan is merely 20,”
he stated, emphasizing the potential contribution of the younger demographic to the country’s economic fabric.
Technological Advancement in Developing Economies
The minister also pointed out that developing economies are poised to surge ahead in technology adoption, allowing them to outpace larger, developed nations. He compared the flexibility of smaller nations to that of speedboats versus larger ships like the Titanic, suggesting that it is easier for emerging markets to adjust and innovate.
International Collaboration and Regulatory Framework
Pakistan has also taken steps to collaborate internationally on Bitcoin initiatives, recently signing a letter of intent with El Salvador. This agreement aims to facilitate an exchange of insights on Bitcoin, energy resources for crypto mining, and digital asset infrastructure, particularly as both countries operate within International Monetary Fund (IMF) frameworks. Bin Saqib explained that the focus of this partnership is to uncover how emerging economies can utilize technology and financial instruments to encourage their growth.
Future Initiatives and Energy Utilization
As part of a broader initiative, Pakistan’s National Crypto Council is seeking to establish a detailed regulatory structure for digital assets, which includes licensing crypto exchanges, developing a strategic Bitcoin reserve, and potentially launching a stablecoin. A unique aspect of Pakistan’s energy landscape is its surplus electricity, which the country currently pays for but may use for Bitcoin mining. Bin Saqib noted that Pakistan has about 10,000 megawatts of excess energy, of which 2,000 MW is being earmarked for Bitcoin mining and artificial intelligence data centers. The government is also considering utilizing excess energy from renewable sources like methane for mining Bitcoin, addressing both energy and economic strategies effectively.
