Between Hype and Hardship: Pakistan’s Crypto Dilemma

Key Points

1. Pakistan's urban population is increasingly using digital assets to hedge against inflation and facilitate cross-border transactions, though only 45.7% are projected to have high-speed internet by 2025.

2. Khyber Pakhtunkhwa province plans state-owned Bitcoin mining farms using renewable energy, aiming for 2 GW capacity, but implementation faces infrastructure hurdles.

3. China's partnership with Pakistan, particularly through the China-Pakistan Economic Corridor (CPEC), is crucial for technological and economic development.

4. Pakistan's regulatory approach to digital assets remains unclear, with authorities banning crypto exchanges in 2022 while exploring a central bank digital currency.

5. Geopolitical tensions with India over water resources, governed by the 1960 Indus Waters Treaty, add pressure to Pakistan's technological and economic stability.