Paraguay’s Senator Views Bitcoin Mining as Economic Boon Amidst Legislative Challenges

In the midst of discussions on whether to ban Bitcoin mining in Paraguay, Senator Salyn Buzarquis has spoken out in favor of the industry, describing it as a “gift from heaven” for the country’s economy. This comes at a time when Bitcoin mining’s profitability has been notably impacted by the recent halving event, which reduced the reward for mining a block, according to Crypto-news-flash.

Senator Buzarquis emphasized the potential economic benefits of using Paraguay’s surplus electricity for Bitcoin mining rather than selling it off cheaply to neighboring countries like Brazil. Currently, Paraguay sells excess power from the Itaipu dam at around $10 per megawatt-hour to Brazil, but miners would pay between $40 and $51 per megawatt-hour, representing a significant increase in revenue.

The local mining industry is reported to generate around $100 million annually, contributing not only to the national energy company ANDE’s bottom line but also supporting local businesses involved in manufacturing mining-related infrastructure. The Senator projects that revenues could increase to $125 million by 2025, which would help avoid bankruptcy and fund further development of the nation’s electricity infrastructure.

This stance by Senator Buzarquis highlights a broader debate within many governments worldwide between the economic potential of cryptocurrency mining and its environmental impacts. As Bitcoin undergoes its fourth mining halving, reducing miner rewards, the conversation around its future profitability and its role in national economies becomes increasingly pertinent.

In Paraguay, where legislative moves are being considered to potentially restrict or encourage mining, the outcome could set a precedent for how other nations approach the integration of cryptocurrency mining into their economic and energy strategies.