The Closest Pair Problem can be solved using a divide and conquer algorithm. The algorithm works as follows:
1. Sort the points by x-coordinate and then y-coordinate.
2. Divide the points into two subsets by a median splitting line.
3. Recursively find the closest pairs in the subsets. Combine the results, checking for closer pairs that cross the splitting line.
The algorithm runs in O(n log n) time, making it efficient for solving the Closest Pair Problem.