Pakistan's Youthful Demographics Propel Bitcoin Adoption

According to Cointelegraph, Pakistan's demographic landscape positions it as a significant driver for Bitcoin (BTC) adoption, potentially allowing the nation to surpass more developed countries in this arena. Bilal Bin Saqib, Pakistan's state minister of crypto and blockchain, highlighted a global policy shift towards cryptocurrency regulation, which Pakistan embraced in November 2024. The country boasts 40 million crypto wallets and ranks among the top five globally in crypto adoption, a trend largely attributed to its youthful population. With a median age of 20.6 years, Pakistan's 250 million citizens include a substantial 70% under the age of 30, making it one of the youngest populations worldwide. This demographic advantage positions Pakistan as a potential leader in adopting new technologies, with smaller, agile countries like Pakistan more likely to embrace Bitcoin ahead of larger, more established economies. In a move to bolster its Bitcoin development, Pakistan has entered into a collaborative partnership with El Salvador. The two nations signed a letter of intent in July to exchange knowledge and education on Bitcoin, digital asset infrastructure, and energy development for crypto mining. This cooperation aims to leverage technology and financial instruments for national growth, particularly for emerging economies under the International Monetary Fund (IMF) program. Pakistan's National Crypto Council, along with other regulatory bodies, is actively seeking input to establish a comprehensive regulatory framework for digital assets. This includes licensing crypto exchanges, developing a strategic Bitcoin reserve, launching a stablecoin, and utilizing excess energy for Bitcoin mining. Pakistan faces a unique challenge with its surplus electricity, which incurs capacity charges. The country has up to 10,000 megawatts (MW) of excess energy, which is considered a liability due to the associated costs. To address this, Pakistan is allocating 2,000 MW for Bitcoin mining and AI data centers. Additionally, the government is exploring the potential to mine Bitcoin using runoff energy from methane and other excess or stranded power sources. This strategic approach not only aims to utilize excess energy efficiently but also positions Pakistan as a forward-thinking player in the global cryptocurrency landscape.