Paraguayan Bitcoin Miners Concerned About New Energy Tariffs
The newly formed association of Paraguayan Bitcoin and altcoin miners is facing a major challenge as the nation’s National Electricity Administration has increased the cost of electricity for miners by 13% to 16%. The Paraguayan Chamber of Digital Asset Mining has warned that these energy rate hikes could have a significant negative impact on the bitcoin mining industry, potentially leading to its disappearance in Paraguay.
The chamber highlighted that the price hikes would result in Paraguay losing significant amounts of revenue, job losses, and a loss of confidence in the government. They also pointed out that energy is being sold to crypto miners at much higher prices compared to other industries in the country.
Despite the government’s pro-business stance, the mining body criticized the administration for taking actions that could undermine the legal security necessary for investment in the country. The mining body, which comprises 12 major BTC mining players, formed in late June to advocate for pro-business regulation and protect the industry, which currently contributes $1.5 billion to the Paraguayan economy annually.
On the other hand, the National Electricity Administration has identified 50 mining firms as members of an “especially intensive consumption sector” and imposed monthly price rises of 16% on the heaviest energy consumers. Additionally, ANDE has been cracking down on illegal crypto mining operations, seizing almost 10,000 ASIC rigs from undeclared mining centers in collaboration with the police.
The situation highlights the ongoing challenges faced by the cryptocurrency mining industry in Paraguay and the potential consequences of the new energy tariffs on the sector’s future growth and sustainability.
