Paraguayan Senate Supports Crypto Mining, Criticizes Brazil Energy Deals

Paraguayan cryptocurrency Mining
The Paraguayan Senate has endorsed a resolution supporting the sale of the country’s excess energy to crypto mining companies, citing the competitive pricing and assurances provided by these entities.

The resolution also voices criticism towards existing agreements that allocate energy to Brazil at a significantly reduced rate, amounting to only 25% of the fees charged to mining operations. Instead, it advocates redirecting this energy to forge 20 new contracts with crypto-mining firms.

Senator Salyn Buzarquis proposed the resolution, emphasizing the Senate’s backing for cryptocurrency mining and highlighting the importance of reallocating surplus power to support such enterprises.

Buzarquis underscored the value of attracting foreign crypto firms to Paraguay, noting their contributions to the nation’s energy infrastructure, which ultimately benefits domestic energy enterprises.

Buzarquis revealed that the sale of energy to cryptocurrency mining has yielded substantial revenue for the National Power Administration (ANDE), surpassing $100 million annually, accompanied by unprecedented assurances from companies within the sector.

Reportedly, more than 45 crypto-mining companies operating in Paraguay are subject to power tariffs ranging from $40 to $52 per MWh, plus taxes.

The power purchase agreements (PPAs) inked with these firms are deemed significantly more advantageous for Paraguay compared to the heavily subsidized energy sold to Brazil, where the fee is a mere $10 per MWh, constituting a quarter of what legitimate mining operations pay.

According to Buzarquis, the involvement of these 45 mining companies is anticipated to bolster ANDE’s revenue to $125 million by 2025, affording the institution greater flexibility to invest in infrastructure and maintain affordable fees for Paraguayan citizens.

Furthermore, the resolution contemplates potential amendments to the contracts governing the supply of power for cryptocurrency mining endeavors, suggesting the imposition of conditions to regulate operations during periods of low demand.

This approach seeks to facilitate economic growth in Paraguay while accommodating the operations of cryptocurrency miners.

With 20 companies awaiting power purchase agreements with ANDE, Buzarquis advocates for prioritizing the sale of energy to these entities over supplying heavily subsidized energy to Brazil, totaling 2,000 MWh.

The resolution emerges in response to a proposed bill advocating for a 180-day suspension of cryptocurrency mining operations in the country.

Also Read: Frog-Themed Memecoin Turns $8.3K Investment into $6.5M Fortune

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