News - Paraguay considers ban on mining Bitcoin

By Luc Vesters

Paraguay considers ban on mining Bitcoin


On April 4, the government introduced a law proposal that would ban Bitcoin mining for 180 days. It was alleged that there were illegal companies stealing electricity and disrupting the country's energy supply.

Paraguayan senators have blocked this proposal for now: the benefits Bitcoin mining would have for the country should first be studied. For example, diverting energy from the Itaipú hydroelectric plant to miners instead of exporting electricity to Brazil or Argentina.

According to Cointelegraph, Senator Lilian Samaniego announced during a Senate meeting on April 10 that there would be a discussion at a public hearing on April 23.

Bitcoin-friendly Senator Salyn Buzarquis has already advocated Bitcoin mining: the industry creates jobs and strengthens the local economy.

According to a calculation by Hashrateindex, Paraguay currently accounts for about 1.45 percent of the hashrate in the Bitcoin system. Therefore, a total ban on the industry would only have a short-term impact on computing power, as the ban in China has already shown.

Because of the hydroelectric plant's cheap and clean electricity - with an annual generating capacity of 14 gigawatts, Itaipú is the second largest hydroelectric plant in the world - Paraguay has become an increasingly popular mining location in recent months.

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