Cryptocurrencies are digital currencies that many sees as the future of currencies. However, several governments around the world are against its progress. According to the Nigerian apex bank’s report, many financial crimes in the country have a link to cryptocurrencies. This is why many governments do not support the use of these currencies. However, not all governments are against it (not openly anyway). According to recent reports, Pakistan will support crypto mining by establishing crypto mining companies.
Pakistan’s Khyber Pakhtunkhwa Province (KP) established a federal committee to formulate new cryptocurrency policies, including government-supported cryptocurrency mining. According to government officials, as part of the new policy, the KP Encryption Advisory Committee has decided to build two hydropower encryption pilot “mining farms” (crypto mining companies). The committee held its first meeting on March 17th to consult with all stakeholders and experts on this initiative.
Reports have that the establishment of the KP Encryption Advisory Committee is to review and discuss “necessary steps for regulation and legalization, as well as necessary measures”. A local cryptocurrency advocate and influencer, Waqar Zaka, apparently plays an important role in the establishment of the committee and is to persuade the local government. However, this initiative is coming directly from the Pakistani government.
In 2018, the National Bank of Pakistan banned the country from using cryptocurrencies. Despite this, Pakistani residents are clearly continuing to invest in cryptocurrencies.
According to local reports, KP Province has been urging the central government to legalize cryptocurrency until a resolution is passed in December 2020, requiring immediate legislative action in the federal government. It is now the first of the four provinces of Pakistan to establish an Encryption and Mining Advisory Committee.