Paraguayan senators have paused progress on a ban on cryptocurrency mining, considering selling excess energy from the Itaipu hydroelectric power plant to miners instead of exporting it to Brazil and Argentina.
Senator Lilian Samaniego confirmed that a hearing will be held on April 23 to debate the pros and cons of local Bitcoin mining.
Paraguayan lawmakers recently submitted a bill to impose a minimum 180-day ban on Bitcoin mining and other businesses due to concerns about illegal mines stealing electricity. However, a few days later, Paraguayan lawmakers changed their attitude and supported investing in infrastructure and expected to make higher profits by selling energy to miners.
In a letter to Congress on April 8, Salyn Buzarquis pointed out that by 2025, licensed mines are expected to bring in more than $125 million in revenue for the National Electricity Administration (ANDE). Paraguay's Itaipu hydroelectric power plant has low electricity costs, and selling surplus electricity to local miners can generate a 45% net profit margin, equivalent to $73 million in annual revenue and $17 million in taxes. This move may save the Electricity Administration from bankruptcy and create more jobs. (Cointelegraph)
Previously, several Paraguayan lawmakers proposed a bill to temporarily ban the country's cryptocurrency mining business because it uses a lot of electricity resources. The bill was submitted to Congress on April 3 and proposed a 180-day ban on the operation and deployment of cryptocurrency mines and other businesses involving cryptocurrency assets. This ban may be extended until laws regulating these activities are enacted.
Kikyo
