Paraguayan bitcoin mining companies hurt by electricity rate hike of over 50%
Paraguay, once seen as a haven for bitcoin and crypto mining villages, has changed. Paraguay’s miners are now complaining because of the price hike that was implemented by the government specifically for cryptocurrency mining.
According to a report by Nano Grijalba, business developer at Brains Mining, this price increase of over fifty percent is clearly discriminating against bitcoin miners as an excuse to reduce the number of jobs created by the latest industry. . Grijalba criticized the environmental rationale of these measures, and also said that Paraguay’s decision to increase fees for bitcoin mining, a clean industry while attracting low-fee and high-emission industries, seemed questionable and we should make it a priority to support sustainable clean industries for the future. Concerns were raised by Grijalba as to the future of hosting activity in the country, including offering mining maintenance to third parties. He pointed out that the cost and international market margins made it virtually impossible to offer this service. Paraguay’s Congress established or implemented a legal framework to regulate cryptocurrency mining and regulation activities in the country, which also set limits on electricity fees for mining in July last year. While this law was vetoed in August by the current President of Paraguay, Mario Abdo Benitez, who said that the industry was characterised by “a high degree of electrical energy and with intensive use of capital and less use of labor” was manifested in”.
Abdo Benitez also points out that the growth of crypto mining activity may also encourage the country to import energy in the future and that Congress attempted to pass the crypto currency project without the support of the President but without the necessary elements. There was a shortage and with this the environment was not ready, due to which all the views could be gathered and with that all kinds of working methods could be prepared in a better way. It was eventually terminated in December.
Grijalba also reveals that the miners are currently working hand in hand with the authorities to ensure their Laws can be re-enforced which will be helpful in reducing the burden currently being faced by the miners. Certainly, Grijalba announced that a new decree is being worked on or a new plan is being worked on to make it attractive again and we hope that it will address the import tax issues. Will do and determine another weak point of it. However, this new decree did not give much detail or much satisfaction and in the end, Grijalba agreed or called for the normalization of activities in the country for the benefit of the national economy.