Key Points
- Paraguay is reconsidering its proposed blanket ban on Bitcoin mining.
- A public hearing is set for April 23 to debate the benefits and risks of Bitcoin mining in the country.
Paraguay’s government is reassessing the idea of a complete ban on Bitcoin mining, a proposal that was initially suggested by lawmakers. A review of the ban is underway to ensure the decision is carefully considered.
A public hearing has been scheduled for April 23 to discuss the matter. The aim of this debate is to weigh up the pros and cons of Bitcoin mining in the country, as stated by Senator Lilian Samaniego during a senate session on April 10.
Paraguay’s Bitcoin Mining Situation
The proposed ban on Bitcoin mining in Paraguay was first introduced on April 4. The draft law aimed to outlaw Bitcoin mining for 180 days, citing concerns about illegal miners stealing power and straining the country’s electricity supply.
However, a few days later, Senator Salyn Buzarquis submitted a draft declaration supporting local and foreign investment infrastructure. He emphasized the economic benefits of selling excess energy to licensed Bitcoin miners and urged the Ministry of Industry to research the subject.
Buzarquis pointed out that the country’s 45 licensed Bitcoin miners could generate $48 million for the National Electricity Administration (ANDE) by 2024. He also predicted that this figure could rise to $125 million by 2025 as miners increase their capacity.
The senator suggested that selling surplus energy from Paraguay’s Itaipu hydropower plant to miners could have significant benefits for the country. This strategy could potentially save ANDE from bankruptcy and generate $73 million annually, plus $17 million in value-added tax for the treasury.
Buzarquis’ draft was approved by the Senate on April 10, leading to a temporary halt in the proposed mining ban. This comes as Bitcoin miners prepare for the significant Bitcoin halving event in 2024, which is expected to reduce miner rewards from 6.25 BTC ($442,000) to 3.125 BTC ($221,000).
