«If done well, bitcoin mining will bring benefits to Paraguay»

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By TP

For the Minister of Industry and Commerce of Paraguay, Javier Giménez, Bitcoin mining, if done well, can bring many benefits to his country. Giménez spoke about cryptocurrency mining, being consulted by local media on the seizure of mining equipment from the raids and arrests that have been made in recent months in Paraguay. He pointed out, in that sense, that illegal activities around mining represent “the ugly face of bitcoin” and is what must be eradicated from the South American country. “The crypto mining that damages and that has to be eradicated from Paraguay is illegal,” the official emphasized in a Audio which was broadcast on X this March 22, adding that most of the seized equipment smuggled into the country. He explains that, then, these devices are connected directly to the lines of the National Electricity Administration (ANDE), a state company, and “begin to suck energy in neighborhoods that may not be prepared for this level of consumption.” Hence the government has taken the decision to pursue these types of actionswhich are currently punished with expensive fines and sentences of several years in prison in Paraguay.

Javier Giménez, Minister of Industry and Commerce of the Republic of Paraguay – Source: Javier Giménez – X. On this topic, BitcoinDynamic has reported on the arrests that have been made, as well as the raids and fines applied. Only so far in 2024 It is estimated that more than 4,000 mining equipment, mostly ASICs, have been seized by the Paraguayan government. The plan is for the Public Ministry and the Supreme Court of Justice to cooperate to eradicate illegal connections, a measure that is supported by miners who are active and who have legally registered in ANDE, agreeing to pay higher electricity rates for your electricity consumption. Grouped in the Paraguayan Chamber of Fintech, these miners assure that illegal cryptocurrency mining represents “unfair competition.” At this point, Giménez draws attention to the fact that mining has become a lucrative activity, especially due to the rise that bitcoin has experienced in recent months, reaching its historical maximum. He thinks that the high value acquired by the digital currency, together with its international recognition as an asset, can be used in favor of the country thus taking advantage of the “good side of bitcoin”. “You can transform energy that you sell cheaply to Brazil today, and sell it more expensively to the cryptocurrency mining industry, which will pay 5 times more than what Brazil exports because the business is profitable,” said the Minister. Approve with it charging higher fees of electricity for those dedicated to Bitcoin mining, as a way to promote the entry of more income for the country. These miners are also required to have a registration that allows them to comply with the requirements related to consumption and the conditions for the installation of authorized farms. Paraguay has been internationally recognized for being one of the most attractive countries for Bitcoin mining. For several years, large companies in the sector have settled in the east of the country, due to the abundance of energy from renewable sources – mainly hydroelectric – and the low cost of electricity.