Paraguayan Bitcoin miners are sounding alarms over new energy tariffs that they fear could decimate their industry. The National Electricity Administration of Paraguay recently hiked electricity costs for miners by 13% to 16%, a move vehemently opposed by the newly established Paraguayan Chamber of Digital Asset Mining.
According to reports from Criptonoticias, the chamber cautioned that these tariff increases would severely harm Bitcoin and altcoin mining operations in the country. They warned of potential industry collapse in Paraguay if the government persists with such high energy costs, predicting substantial revenue losses for the nation.
In addition to economic impacts, the chamber highlighted broader repercussions such as job losses and diminished trust in government policies. Despite acknowledging the Paraguayan government’s generally favorable stance towards business, the chamber criticized what it perceives as unjustifiably hostile actions towards the mining sector.
The mining body, composed of major players like Muiden, Antilia Sur, Archer, Richford, and Bitfarms, united recently to advocate for regulatory frameworks that support rather than hinder crypto mining activities. They emphasized the sector’s significant contribution of $1.5 billion annually to the Paraguayan economy.
Meanwhile, the National Electricity Administration defended its tariff adjustments, identifying cryptocurrency mining as a sector with exceptionally high energy consumption. ANDE, in collaboration with law enforcement, has intensified efforts to curb illegal mining activities, recently seizing nearly 10,000 ASIC rigs from unregistered facilities.
As Paraguay navigates these developments, the future of its crypto mining industry hangs in the balance, with stakeholders urging for policies that sustain rather than threaten its growth.
