Paraguay Hikes Energy Tariffs for Bitcoin Mining, Threatening Industry Viability

  • Sergey Maga
  • 8 July, 2024 08:59
Paraguay Hikes Energy Tariffs for Bitcoin Mining, Threatening Industry Viability

The National Electricity Administration of Paraguay (ANDE) announced a 14% increase in electricity tariffs for Bitcoin and other cryptocurrency mining operations. This decision threatens the viability of these companies in the country. Local media reports that the tariff hike affects crypto asset mining, blockchain, token, and data center operations, potentially undermining the sustainability of such activities, according to Bitcoin.com.

The reaction from industry representatives and Bitcoin supporters was immediate, with criticism from politicians and elected senators.

Senator Salyn Buzarquis sharply criticized the measure, stating it demonstrates an internal contradiction within the Paraguayan government and could affect future investments in the sector. Buzarquis emphasized that the action was unfair, considering these companies have already invested substantial capital in Paraguay.  

The new tariff policy may push Bitcoin miners to seek more cost-effective alternatives, as witnessed in the recent shift to Argentina due to its lower energy costs and favorable tax conditions. This development follows a broader trend of Latin American countries reassessing their positions on cryptocurrency mining amid changing economic landscapes.

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