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Paraguay’s President rejects crypto regulation bill

On August 30, Mario Abdo Bentez, the President of Paraguay, rejected a bill that seeks to designate crypto mining as an industrial activity. He reasoned that mining’s high power use might hinder the growth of a country’s sustainable industry.

The bill claims that crypto mining requires a lot of capital investment and little human labour; it does not add value comparable to other industrial operations. The bill supporter, Senator Fernando Silva Facetti,  suggested that the legislation was designed to promote crypto mining by utilising extra electricity, but the Paraguaya government chose to disregard the nation’s mining industry.

According to the report, industrial investment in the country climbed by 220% to $319 million in the previous year, even though the GDP increased by more than 4% over the previous five years. If this rate is permitted to continue, the national industry may require all the energy produced and accessible in the country in order to preserve sustainability.

The regulator, Fernando Silva Fabetti stated :

 “If Paraguay wants to intensify crypto mining today, in the next four years it will be forced to import electricity.”

The Senate-approved bill specifies that miners must submit a licence application and a request for authorization to utilise industrial energy. 

Due to the low cost of electricity in Paraguay, local and international corporations have been setting up mining infrastructure since 2020. Home energy expenditures in December 2021 were $0.058 per kWh and commercial electricity costs were $0.049 per kWh, according to data on the price of gasoline around the world.

Read more at Cryptoshrypto:
Paraguay Senator approves pro-crypto bill to boost crypto mining activities

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