Pakistan’s Youth and Energy Surplus Fuel Bitcoin Boom

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Pakistan is emerging as an unexpected leader in cryptocurrency adoption, with its young population and untapped energy resources driving a 20% annual growth in Bitcoin (BTC) usage. The nation’s median age of 20.6 years and 40 million cryptocurrency wallets demonstrate a natural affinity for digital assets, while 10,000 megawatts (MW) of surplus power, 2,000 MW already allocated to crypto mining positions, make Pakistan a potential hub for blockchain innovation. This strategic alignment of demographics and resources offers a blueprint for how developing economies can leapfrog traditional financial systems.

The government has taken proactive steps to capitalize on this opportunity, establishing a regulatory framework in November 2024 through its National Crypto Council. State Minister Bilal Bin Saqib emphasizes that licensing exchanges, creating a Bitcoin reserve, and exploring a national stablecoin, a cryptocurrency pegged to a stable asset, will balance innovation with investor protection. “Our youth and energy advantages let us rewrite the rules of financial inclusion,” Saqib noted. This forward-thinking approach contrasts with the bureaucratic stagnation seen in many Western nations, where overregulation often stifles technological progress.

A landmark partnership with El Salvador, signed in July 2025, underscores Pakistan’s commitment to becoming a crypto leader. The collaboration focuses on knowledge-sharing in mining infrastructure and digital finance, particularly for nations under International Monetary Fund (IMF) programs. Meanwhile, Pakistan is converting its energy liabilities, such as excess capacity costing millions in idle fees, into assets by powering Bitcoin mines. Innovative solutions, like harnessing methane emissions for mining operations, demonstrate a market-driven approach to environmental and economic challenges.

While hurdles remain, including energy grid instability and the need for clearer environmental guidelines, Pakistan’s model offers valuable lessons. By leveraging its demographic dividend and resource efficiency, the country is positioning cryptocurrency as a tool for economic sovereignty. As traditional financial systems falter under inflation and bureaucracy, Pakistan’s embrace of Bitcoin highlights how free-market principles and technological adoption can empower emerging economies. The world will be watching to see if this experiment in financial evolution succeeds.