Paraguayan senators have paused progress on a proposed cryptocurrency mining ban and are now exploring the option of selling surplus energy from the Itaipu hydropower plant to miners rather than exporting it.Â
A public hearing on April 23 will discuss the benefits and drawbacks of Bitcoin mining in the country, as confirmed by Senator Lilian Samaniego in a recent senate session.
This development follows the introduction of a draft law on April 4 to temporarily ban Bitcoin mining for 180 days due to concerns about illegal cryptocurrency mines draining power and disrupting the electricity supply.
However, a declaration supporting local and foreign investment infrastructure was approved on April 8, with Senator Salyn Buzarquis advocating for studying the economic advantages of selling excess energy to Bitcoin miners.
Buzarquis highlighted that licensed cryptocurrency miners could generate significant revenue for the National Electricity Administration (ANDE), potentially preventing bankruptcy and allowing for infrastructure investments. This move could also create job opportunities and increase tax revenue.
The debate underscores the potential impact on industry players like Marathon Digital Holdings, which operates in Paraguay and may be affected by changes in mining regulations. The discussions coincide with the upcoming Bitcoin halving event on April 20, which will reduce miner rewards.
The decision on cryptocurrency mining in Paraguay is critical amid global debates on energy consumption and sustainability in the crypto industry.
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