Some important senators in Paraguay do not seem so convinced about the ban on Bitcoin mining, which was introduced last week.
Apparently, people from the industry have stepped up to convince the government that Bitcoin mining also has advantages. For example, it is now considering selling excess energy from the Itaipu hydroelectric plant to Bitcoin miners, instead of exporting it to Brazil and Argentina.
April 23 clarity
A public hearing will take place on April 23 to discuss the pros and cons of Bitcoin mining in the country, Senator Lilian Samaniego confirmed during an April 10 Senate session.
Remarkably, these statements come one week after lawmakers introduced a bill to ban Bitcoin mining for a period of 180 days.
The reason for this is said to be that miners illegally stole power and caused problems for Paraguay’s energy grid.
A few days later, Paraguayan lawmakers approved a proposal that actually protects local and foreign investments in infrastructure. This should then prompt the Ministry of Industry in Paraguay to study the economic advantages and disadvantages of Bitcoin mining.
Hope for Bitcoin mining in Paraguay
In total, there are 45 licensed miners in Paraguay, which would consume $48 million worth of power in 2024. By 2025, that number could even rise to $125 million.
By selling the energy to Bitcoin miners, Paraguay could make a 45 percent profit on that electricity.
That generates $73 million annually and $17 million in VAT for the country’s treasury. Senator Salyn Buzarquis claims that Bitcoin mining can even prevent the energy company ANDE from ultimately going bankrupt.
“This influx of capital will save ANDE, make it possible to invest more in infrastructure and prevent them from having to increase rates for Paraguayans,” Buzarquis said.
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Source: https://newsbit.nl/toch-geen-verbod-op-bitcoin-mining-in-paraguay/
