Paraguay Fails To Pass Bitcoin Mining Bill — Bitcoin Magazine

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  • The Paraguay leg­is­la­ture did not pass a bill that would have reg­u­lat­ed cryp­tocur­ren­cy min­ing in the country.
  • The bill, orig­i­nal­ly passed in July of 2022, was sub­se­quent­ly vetoed by Pres­i­dent Mario Abdo Benítez in August, which sent it back to the legislature. 
  • If passed, the bill would have lim­it­ed out­sized charges levied against bit­coin min­ers for their ener­gy usage. 

Accord­ing to a Coin­desk report, “The indus­try has found itself in a fight with the local grid oper­a­tor provider, Ande, and some mem­bers of the leg­is­la­ture who claim that the grid’s infra­struc­ture can­not han­dle the excess load and that the indus­try does­n’t great­ly ben­e­fit the local econ­o­my and society.”

Ande had request­ed that the Paraguayan gov­ern­ment raise elec­tric­i­ty tar­iffs by as much as 60% over the indus­try stan­dard — and the bill would have capped these increas­es to 15%.

Paraguay has become a major loca­tion for bit­coin min­ing as a result of the country’s abun­dant pow­er. The Itaipú dam, one of the largest in the world, has proven to be a boon of cheap ener­gy, enabling a rush to absorb this val­ue into the Bit­coin net­work via min­ing. If the coun­try seeks to expand on this rush of invest­ment into the ener­gy infra­struc­ture of the coun­try, get­ting reg­u­la­tion cor­rect is crit­i­cal to not sti­fling that. 

Indus­try play­ers involved in Paraguay include Bit­farms, who has a 10MW facil­i­ty based there, and Pow.re, who has oper­a­tions total­ing 12MW there.

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