Paraguayan senators have decided to pause progress on a proposed cryptocurrency mining ban and are now exploring the possibility of selling excess energy from the Itaipu hydropower plant to miners instead of exporting it to neighboring countries.
A public hearing is scheduled for April 23 to discuss the advantages and disadvantages of Bitcoin mining in Paraguay. Senator Lilian Samaniego confirmed this decision during a Senate session on April 10.
This decision comes after lawmakers introduced a draft law on April 4 to temporarily ban Bitcoin mining for 180 days due to concerns about illegal mining operations disrupting the country’s electricity supply. However, just days later, Paraguayan lawmakers approved a declaration supporting local and foreign investment infrastructure, signaling a shift in approach.
Senator Salyn Buzarquis hopes that this declaration will prompt the Paraguayan Ministry of Industry to examine the economic benefits of selling excess energy to Bitcoin miners. Buzarquis highlighted that licensed cryptocurrency miners could generate significant revenue for the National Electricity Administration (ANDE), potentially saving it from bankruptcy.
By selling excess energy to local Bitcoin miners, ANDE could see substantial profits and generate additional revenue through value-added tax. Moreover, cryptocurrency mining operations could create employment opportunities, contributing to the local economy.
The potential economic benefits of cryptocurrency mining have prompted Paraguayan senators to reconsider their stance and explore new opportunities for leveraging the country’s energy resources.
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