Paraguay’s Bitcoin Mining Ban Could Lead to $200 Million Annual Loss

  • Sergey Maga
  • 20 May, 2024 00:05
Paraguay’s Bitcoin Mining Ban Could Lead to $200 Million Annual Loss

A proposed bill to ban Bitcoin mining in Paraguay could result in significant economic losses, with estimates suggesting an annual loss of over $200 million. This potential ban arises from concerns among lawmakers about unauthorized mining operations disrupting the nation’s power supply. The legislation, aims to halt crypto mining for 180 days or until new regulations ensure adequate energy supply, according to Koogle.

Paraguay, with a population of 6.8 million and a global GDP ranking of 94, has benefited economically from Bitcoin mining. Currently, operations must secure authorization from the Ministry of Industry and Commerce. However, the ban could impact major players, such as Marathon Digital Holdings, which began operations near the Itaipu hydroelectric power plant last November. This plant has been attractive to miners due to its surplus electricity production, which is often sold to Brazil at lower rates.

Concerns about illegal mining activities’ impact on the power supply, particularly in the Alto Paraná region, have been raised by the National Electricity Administration, citing financial losses and infrastructure damage. These concerns are driving the proposed legislation.

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