Due to frequent cases of energy theft in the electrical system, detected by the National Electricity Administration (Ande), Paraguay may suspend, for a period of 180 days, authorizations for cryptocurrency mining in the country.
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According to the newspaper Last Minute, a group of 14 senators presented, last Wednesday (3), a bill which “temporarily prohibits the creation, conservation, storage and commercialization of virtual assets or crypto assets, cryptocurrencies and the installation of mining farms in Paraguayan territory”.
The matter is signed by government and opposition senators, such as Blanca Ovelar, Colym Soroka, Mario Varela, Gustavo Leite and Éver Villalba.
The justification states that “while electricity cuts are happening constantly and the country is setting new consumption records, around 28% of total energy use corresponds to losses that the state-owned company Ande has due to irregular connections, including cryptocurrency mining farms”.
Mining requires intensive use of electrical energy, with equipment running 24 hours a day and refrigeration systems.
According to Ande, there are 52 legal contracts with the company for the production of cryptocurrencies in the country, which consume power equivalent to 270 MW (megawatts) and provide profits for the company.
The problem is the large number of illegal connections, which would generate an estimated annual loss of US$60 million (R$300 million) in the department (state) of Alto Paraná alone, whose capital is Ciudad del Este.
The project presented by the senators foresees the suspension of activities for six months or until Ande is “in technical and operational conditions to offer a service that responds to the real needs of consumption demand of cryptocurrency farms, without affecting other users”.
The processing of a bill in Paraguay is similar to that in Brazil. To come into effect, the bill must be analyzed by the internal committees of the Senate and the Chamber of Deputies, in addition to being voted on in plenary. If approved by both houses, it will be sent to the President of the Republic for approval.
To follow the progress of the project, in the Paraguayan Legislative Information System (in Spanish), click here.
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