Paraguay Re-Evaluates Proposed Ban on Bitcoin Mining

Paraguay is debating the sale of excess energy to Bitcoin miners, revising its stance on a mining ban amid potential economic benefits.
Paraguay Re-Evaluates Proposed Ban on Bitcoin Mining

Key Takeaways

  • Paraguay reconsiders Bitcoin mining ban, debates energy sales directly to miners.
  • Bitcoin mining could generate significant revenue for Paraguay's National Electricity Administration.
  • Potential economic benefits include job creation and preventing ANDE's bankruptcy.

Paraguay’s legislators are rethinking a proposed ban on Bitcoin mining, now eyeing the sale of surplus energy from the Itaipu hydropower plant to miners.

The Senate is set to discuss this alternative on April 23.

Economic incentives for mining

Senator Salyn Buzarquis highlighted the potential for Bitcoin mining to generate significant revenue for the National Electricity Administration (ANDE).

Licensed miners could contribute $48 million by 2024 and $125 million by 2025.

Potential benefits for Paraguay

Selling energy to miners at $40/MWh could yield a 45% net profit margin for ANDE.

This move could also create jobs and prevent ANDE’s bankruptcy, as noted by Buzarquis. Paraguay currently sells energy to Brazil at a subsidized rate of $10/MWh.

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