Paraguayan senators have halted work on a potential cryptocurrencycurrency mining ban and are now considering selling extra energy from the Itaipu hydroelectric project to miners rather than exporting it.
Senator Lilian Samaniego stated in a recent Senate session that a public hearing will be held on April 23 to address the merits and downsides of Bitcoin mining in the country.
This development comes after a draft law was introduced on April 4 to temporarily restrict Bitcoin mining for 180 days, citing concerns about illegal cryptocurrencycurrency mines draining power and disrupting the electricity supply.
However, a proclamation promoting local and foreign investment infrastructure was adopted on April 8, with Senator Salyn Buzarquis pressing for research into the economic benefits of selling extra electricity to Bitcoin miners.
Buzarquis emphasized that licensed bitcoin miners might generate significant money for the National Electricity Administration (ANDE), perhaps preventing bankruptcy and enabling infrastructure projects. This change could also result in more job possibilities and higher tax income.
The debate highlights the possible impact on industry participants such as Marathon Digital Holdings, which operates in Paraguay and may be affected by changes to mining legislation. The discussions coincide with the approaching Bitcoin halving event on April 20, which will result in lower miner rewards.
The decision on cryptocurrencycurrency mining in Paraguay is crucial given global concerns over energy usage and sustainability in the bitcoin industry.
