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Paraguay plans to initiate state mining operations using confiscated devices., 2026/03/07 13:25:56
The authorities in Paraguay are exploring the possibility of initiating state-run cryptocurrency mining using equipment seized from illegal miners.
The project will be operated by the crypto company Morphware, which has signed a cooperation agreement with Paraguay’s National Electricity Administration (ANDE) regarding mining activities.
According to Morphware’s CEO Kenso Trabing, the initiative aims not only to mine Bitcoin but also to enhance computational capabilities for artificial intelligence projects.
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“By placing mining devices in regulated locations under the oversight of the state energy company, we can convert unused electricity into productive computational power. This will benefit both the Bitcoin network and the global artificial intelligence economy,” Trabing stated on the social media platform X
However, experts consulted by DL News express skepticism about the project’s prospects. Engineer and energy specialist Nelson Cristaldo pointed out that the confiscated devices are significantly outdated, lagging behind current models by approximately two generations, making it challenging to generate profit with them.
With its low electricity costs and tax incentives, Paraguay has long been regarded as an attractive jurisdiction for mining. Since 2021, several major industry players, including HIVE Digital, Marathon Digital, and Bitfarms, have begun operations in the region.
Concurrently, there has been an increase in the discovery of illegal crypto farms. In 2024, the country’s authorities dismantled over 30 illegal mining operations. In response, the government tightened regulations and introduced criminal penalties for illegal cryptocurrency mining, including fines and potential prison sentences of up to ten years. Following this, Bitfarms and several other large operators exited the country.
At the end of December, Paraguay’s Chamber of Deputies also approved a bill requiring local miners and related companies to register with the Ministry of Industry and Trade of Paraguay (MIC). After registration, operators will be able to obtain a five-year operating license.
