Paraguay’s President Dismisses Complaints About Power Fee Hikes From Bitcoin Mining Companies
The government of Paraguay supports implementing a power fee hike of up to 14%, the President of Paraguay, recently ignored the complaints of several bitcoin mining operators about the impact of this rise on the viability of their operations in the country
Santiago Peña, the President of Paraguay, dismissed complaints from bitcoin mining farm operators regarding the power fee hikes implemented by ANDE for these activities. Peña stated that these price increases do not require consultation with the operators and that more companies in the industry are waiting to enter the country.
Interest in Paraguay as a Bitcoin Mining Haven Remains High Despite Recent Power Fee Hikes
The government of Paraguay supports implementing a power fee hike of up to 14%, affecting bitcoin mining operations. Santiago Peña, the President of Paraguay, recently ignored the complaints of several bitcoin mining operators about the impact of this rise on the viability of their operations in the country.
Peña stated that, although this hike would reduce the margins of the business, it would not discourage bitcoin mining operators from continuing their activities in Paraguay. He also emphasized that the industry does not provide a significant number of jobs.
Peña also mentioned that the contracts signed with these companies did not contain any clauses requiring the government to consult with them before implementing a fee hike. "The contract states that it can increase if the cost of energy rises," he stressed.
Finally, he pointed out that even with this price increase, there were still many bitcoin companies interested in setting up in Paraguay. Peña declared:
"We are preparing for the arrival of companies that we believe will generate dynamism and will be part of a technological ecosystem in which we are working, to transform Paraguay into a technological center."
Capamad, a bitcoin mining association that includes mining heavyweights such as Bitfarms in the country, criticized Peña's remarks, emphasizing that the contracts signed with the National Power Association (ANDE) did stipulate that any changes should be applied with mutual consent.
The organization rejected the government's course of action, stating that these were measures that "further damage the country's image and compromise the long-awaited investment grade by violating legal certainty."
Penguin Group, part of Capamad, has already secured a 400MW site in Brazil, and other companies would be looking at the neighboring country to relocate their mining operations.
