IMF Modifies its Position, Tone Downs Bitcoin Rejection in Pakistan
The International Monetary Fund (IMF) has displayed a nuanced stance towards Bitcoin mining, especially when it comes to national initiatives like Pakistan's plan to allocate surplus electricity for Bitcoin mining and AI data centers.
In a recent development, Daniel Batten, a sustainability and technology expert, stated that the IMF has adopted a more diplomatic and technical approach to evaluating Pakistan's Bitcoin mining plan. The excess electricity in Pakistan primarily comes from thermal and coal power plants operating below capacity.
Pakistan is focusing on monetizing its energy surplus and leveraging opportunities presented by the crypto industry to boost its economy and technological development. The country aims to better utilize its energy infrastructure, attract foreign investments, generate employment in the tech sector, and strengthen its digital economy through this plan.
The IMF has not endorsed the power subsidy or explicitly approved the mining plan. However, it has emphasized the importance of maintaining a level playing field for all private sector participants and continues to follow developments closely. As of now, Pakistan's plan remains pending without formal IMF approval.
Interestingly, in July 2025, the IMF formally integrated Bitcoin into its statistical frameworks, acknowledging its role as a "non-produced nonfinancial asset" due to its energy consumption and economic footprint. The IMF has also suggested that countries consider including Bitcoin in their GDP calculations to better reflect digital economy trends, though this does not equate to promoting Bitcoin mining or use.
Batten noted that in countries where the IMF opposed Bitcoin but adoption continued, economies have thrived. He suggested that the IMF's resistance to Bitcoin may be partly driven by a fear of losing relevance in a world where Bitcoin offers financial and technological alternatives.
Pakistan's Bitcoin mining initiative represents a geopolitical milestone of great significance, according to Batten. The country plans to use 2,000 megawatts of excess electricity for Bitcoin mining and AI data centers, a move that can be seen as a significant step in redefining global economic power, with Bitcoin at the forefront. The integration of AI data centers complements Pakistan's vision of digital modernization.
Pakistan sees Bitcoin mining as a tool to monetize energy excess and diversify its economy. Bitcoin mining in Pakistan has the potential to optimize energy resource use, generate foreign currency income, attract investments, and foster technological development.
The shift in the IMF's stance towards cryptocurrencies is significant. While the IMF has historically shown a critical stance towards Bitcoin and its mining, expressing concerns about economic stability and energy use, it is now engaging in technical discussions with Pakistan's authorities regarding the Bitcoin mining plan.
This development could set a precedent for other developing countries facing similar challenges in their energy and economic sectors. Pakistan's Bitcoin mining plan is part of a national strategy to modernize the country's productive and technological matrix. The International Monetary Fund (IMF) has not publicly rejected Pakistan's Bitcoin-related initiative, instead maintaining a technical dialogue with Pakistani authorities.
The IMF's technical dialogue with Pakistani authorities about Bitcoin mining suggests a shift in its stance towards cryptocurrencies, indicating a potential openness to other technology-driven economic solutions. This development might encourage other countries with similar energy and economic challenges to explore the use of Bitcoin and similar technologies.
