Paraguay Senate Backs Crypto Mining Investment, Eyeing Energy Surplus Revenue
Paraguay's Senate has taken a significant step in its energy policy, adopting a resolution on April 10th that supports foreign investments in infrastructure and explores the economic benefits of selling energy surpluses to the crypto mining industry. The move comes as the country seeks to capitalize on its abundant and affordable hydropower resources.
The resolution, submitted by Senator Salyn Buzarquis on April 8th, has sparked a debate on the future of Paraguay's energy sector. Some senators propose terminating energy agreements with Brazil to provide power to twenty additional mining companies, a move that could generate substantial revenue for the country.
The proposal follows a temporary ban on Bitcoin mining introduced in Congress on April 3rd. This ban was due to economic losses and power outages caused by illegal mining facilities. Now, the Paraguayan Congress is considering clear rules for the mining industry to move forward in its decision. A demand-response program is also being discussed, where mining operations would be restricted during high electricity demand periods.
The potential of Paraguay's energy surpluses for the crypto mining industry is substantial. Currently, 45 legal foreign mining companies generate over 100 million US dollars annually for Paraguay through electricity tariffs. With projected revenues reaching 125 million US dollars by 2025, the Senate's resolution signals a step towards harnessing this potential while ensuring responsible energy management.
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