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HomeNewsParaguay Embraces Bitcoin Mining, Will Continue to Supply Energy to Legal Miners

Paraguay Embraces Bitcoin Mining, Will Continue to Supply Energy to Legal Miners

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In a move to capitalize on its energy surplus, Paraguay has revealed its strategy regarding bitcoin mining. Javier Gimenez, the Minister of Industry and Commerce, recently disclosed that the country will continue to supply energy to legal bitcoin miners, despite concerns over illegal mining activities.

During a meeting with Brazilian representatives of the joint commerce chamber, Gimenez explained that Paraguay’s energy surpluses would power 10,000 industries, but only a few can take advantage of it now. To address this, the government will provide energy to bitcoin miners, who have a steady demand for this power.

“We are rushing to attract industries, but it would be good if we give energy to cryptocurrency miners, where there is demand, so that they use it in the meantime,” Gimenez stated.

The minister emphasized that the government will initially focus on providing energy to bitcoin miners, with the goal of transitioning to labor-intensive industries in the future. However, Gimenez acknowledged that this approach may not be popular among all circles.

“The press attacks you every day when you want to implement an idea like this, but the president is not afraid,” he stressed.

Paraguay has been battling illegal bitcoin mining activities, having recently disconnected a farm with over 2,700 miners linked directly to the grid, evading payments for the energy used. Despite this, the government remains committed to supporting legal bitcoin mining activities.

The country aims to take advantage of 50% of the energy generated by the Itaipu dam system, one of the largest hydroelectrical power central in the world, within three years. Currently, only 20% of the power generated is used, with part of the surplus being rerouted to Brazil, which pays a third of what some cryptocurrency mining companies pay for this power.

Paraguay’s decision to support legal bitcoin mining activities is expected to bring in revenue and create jobs in the country. The government’s strategy is seen as a win-win for both the country and the bitcoin mining industry.

Source: Bitcoin.com

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