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A recently established association of Bitcoin (BTC) and altcoin miners in Paraguay has expressed concerns that new energy tariffs could jeopardize the industry.
According to Criptonoticias, the organization made this statement following the National Electricity Administration’s decision to raise electricity costs for miners by approximately 13% to 16%.
Paraguayan Bitcoin Miners Assert Price Increases Are Excessive
The Paraguayan Chamber of Digital Asset Mining cautioned that the increased energy rates “will have a considerable adverse effect” on the bitcoin mining sector.
Furthermore, the chamber indicated that this could “potentially result in the sector’s extinction in Paraguay.”
The chamber also noted that the price increase would lead to Paraguay “losing substantial revenue.”
Miners pointed out that other negative repercussions would encompass “job losses” and a “decline in trust in the government.” They stated:
“Energy is being sold to [crypto miners] at significantly higher prices – even as much as 50% more – compared to other industries in Paraguay.”
The organization remarked that the Paraguayan government has adopted a pro-business approach. It stated that the administration typically “encourages stability and a conducive environment for business.”
Morning Bid: Nvidia’s half trillion hiccup; Bitcoin, China slide https://t.co/y7ijX3uGMb pic.twitter.com/Y7JqoiP6TE
— Reuters Politics (@ReutersPolitics) June 25, 2024
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Nonetheless, regarding its stance on crypto mining, the mining association claimed that the government was implementing “measures that will unjustifiably impact the viability of a sector that offers significant benefits to the country.” The organization stated:
“This situation will only project a negative image of the investment climate in Paraguay. It will greatly [undermine] the legal security essential for investment – both domestic and foreign.”
The mining association consists of 12 prominent BTC mining entities, including Muiden, Antilia Sur, Archer, Richford, and Bitfarms.
It was established in late June in a clear effort to advocate for pro-business regulations. The association claims that Bitcoin mining currently contributes $1.5 billion annually to the Paraguayan economy.
The proportion of Bitcoin traded over weekends has dropped to an all-time low of 16% this year, according to cryptocurrency research firm Kaiko https://t.co/jn2MX1Ux5a
— Bloomberg Markets (@markets) June 29, 2024
New Tariffs Could Lead to Job Reductions, Industry Association Warns
However, the National Electricity Administration (ANDE) has categorized around 50 mining companies as part of an “especially intensive consumption sector.”
The largest energy consumers within this group are facing monthly price increases of 16%, with tariffs rising from USD/KW 55.88 to USD/KW 65.04.
ANDE has also intensified its efforts against illegal crypto mining. In collaboration with law enforcement, it has assisted in seizing nearly 10,000 ASIC rigs from unregistered crypto mining operations.
The post Paraguayan Bitcoin Miners: New Energy Tariffs Will Kill Our Industry appeared first on Cryptonews.
