Lawmakers and senators in Paraguay are set to delay progress on the proposed cryptocurrency mining ban.
Top officials are now thought to be considering the benefits of selling excess energy from its Itaipu hydropower plant to miners.
This is as opposed to exporting it to neighbouring South American countries such as Brazil and Argentina. A public hearing has been pencilled in for April 23.
The debate will provide the opportunity to discuss the benefits and drawbacks of Bitcoin mining in the country. A draft ban was initially introduced on April 4 to ban Bitcoin mining for 180 days.
A temporary hiatus came close to fruition after claims that cryptocurrency mines had been disrupting Paraguay’s electricity supply after stealing power.
Earlier this week, lawmakers u-turned and approved a declaration to support local and foreign investment infrastructure.
Senator Salyn Buzarquis will try to persuade the Paraguayan Ministry of Industry about the benefits and advantages of selling excess energy to Bitcoin miners.
Paraguay Bitcoin Mining
Before delaying progress in the Paraguay bitcoin mining ban, it was thought that the country could potentially lose $200 million.
The country’s national grid and utility companies were very much on the backfoot. However, excess energy could now be sold off to local Bitcoin miners at $40 per-megawatt-hour (MWh).
Currently, the current cost of electricity via Itaipu’s hydropower plant hovers around the $22/MWh range.
The proposals would generate a 45% net profit margin. Therefore, equating to $73m annually and approximately $17m in value-added tax for the treasury.
Senator Salyn Buzarquis said that the 45 licensed crypto miners are on track to generate $125m for the National Electricity Administration (ANDE) by 2025.
Buzarquis also noted that bitcoin mining could save ANDE from bankruptcy. “This flow of funds is what is going to save ANDE from going bankrupt; to be able to invest more in infrastructure and not to raise the rate.”
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