Paraguay Considers a New Path in the Cryptocurrency Industry
Date: 2024-04-12 Author: Oliver Abernathy Categories: IN WORLD
The issue of selling excess electricity to miners is taking center stage in Paraguay, where the Senate is weighing the option of selling electricity to cryptocurrency companies instead of passing legislation to ban the industry. This initiative, with a price per MWh above $40, could bring significant benefits to the country and stimulate economic growth.
Alternative to ban
Senator Salin Bouzarkis and his colleagues proposed this initiative as an alternative to a bill to completely ban cryptomining. In their opinion, this will allow the country to benefit more from the cryptocurrency sector and avoid the negative consequences of a complete ban.
Economic prospects
The initiative could bring the national energy authority up to $48 million by the end of 2024 and up to $125 million by the end of 2025, Bouzarkis estimates. Experts also note that miners are willing to buy electricity at higher prices, which could become an additional source of income for the country.
Buzarkis's proposal is also being discussed in the context of economic benefits for the National Electricity Authority (ANDE), which could avoid bankruptcy and maintain the old electricity tariffs for the population. This was made possible by selling excess electricity to miners at higher prices.
While Bouzarkis's proposal provided an alternative to a complete ban on crypto mining, it has sparked debate and warrants further study, especially since more than 90% of the country's electricity production is exported, primarily to Brazil.
