Paraguayan bitcoin mining companies hit by electricity rate hikes of more than 50% – Mining Bitcoin News

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Paraguayan mining companies are taking a hit to their profitability due to the sharp hikes in electricity charges that the government has established for cryptocurrency mining activities. According to reports from Braiins Mining business developer Nano Grijalba, after the Crypto Law was vetoed, the change in electricity charges makes mining an unprofitable business in Paraguay.

Rising Bitcoin Mining Feed Fee Harms Paraguayan Businesses

Once considered a haven for bitcoin and crypto miners, Paraguay has changed. Paraguayan miners are now complaining due to price hikes the government has enforced specifically for the cryptocurrency mining industry. According to reports from Nano Grijalba, commercial developer of Braiins Mining, this price increase of more than 50% discriminates against bitcoin miners by directly using the excuse of the low number of jobs created by the industry.

Grijalba criticized the environmental logic of these measures. On this issue, he said:

Paraguay’s decision to raise fees for bitcoin mining, a clean industry, while attracting high-emitting industries with low fees, is questionable. We must prioritize support for clean industries for a sustainable future.

Accommodation activity affected

Grijalba raised concerns about the future of the hosting business in the country, which involves providing logging maintenance services for third parties. He explained that the costs and margins of the international market made it impossible to offer this service.

The Paraguayan Congress passed a legal framework to regulate cryptocurrency mining and trading activities in the country, setting limits on electricity charges for mining in July last year. However, this law was opposed in August by the current President of Paraguay, Mario Abdo Benitez, who said that the industry was characterized by its “high consumption of electrical energy, with intensive use of capital and low use of the work force”.

Abdo Benitez also explained that the growth in crypto-mining activity could push the country to import energy in the future. Congress attempted to pass the cryptocurrency bill without presidential support, but failed to get the necessary votes, and ultimately shelved it in December.

Grijalba revealed that miners are currently working hand in hand with authorities to reintroduce laws that would ease the burden miners currently face. Regarding this, Grijalba said:

A new decree is currently being drafted to make it attractive again, we hope that it will settle the question of import taxes, another weak point.

However, no further details were offered on this new decree. Finally, Grijalba called for the normalization of these activities in the country for the benefit of the national economy.

What do you think of the state of bitcoin mining in Paraguay? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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