Paraguay president banned the mining draft bill

Miners lost their hope to mine BTC using “green” power in Paraguay. Mario Abdo Benites hasn’t supported the mining draft bill that was previously approved by Parliament.

The president commented that his decision admitted the concerns that high-level mining electricity consumption, which usually takes place on the “farms”, will not allow to implement the stable production development.

Now Paraguay is the leader of export electricity: 75% directed to Brazil and Argentina, 10% – to other Latin American countries. The level of electricity consumption by its own population is the lowest in the world. That’s why some experts are sure that economic growth exists only in the president’s words.

Miners are interested in Paraguay’s location because the country has its own hydroelectric power plant that can generate “clean” energy. Consequently, mining can help to use the overproduced of energy and also help turbines to reach optimal capacities.

From their side deputies offered the mining-farms to buy electricity with discount and exempted them from VAT.

Some analysts came into conclusion that mining in Paraguay put under the threat afforded resources for Brazil and Argentina that can donate production today and compensate for the lack of their own sources.