Paraguay Raises Electricity Tariffs for Cryptocurrency Mining

The Paraguayan National Electricity Administration (ANDE) has announced a significant 14% increase in electricity tariffs specifically targeting Bitcoin and other cryptocurrency mining operations.

This decision has raised concerns about the sustainability of these activities within the country. According to local media, the tariff adjustment affects various aspects of crypto asset mining, including blockchain, token, and data center operations.

The response from industry leaders and proponents of Bitcoin was swift, with criticism voiced by politicians and elected senators.

Senator Salyn Buzarquis strongly condemned the move, arguing it reveals internal contradictions within the Paraguayan government and could deter future investments in the sector. Buzarquis pointed out the perceived injustice, noting that these companies have already made significant financial commitments in Paraguay.

The revised tariff policy might prompt Bitcoin miners to explore more economically viable alternatives, echoing recent shifts observed towards Argentina, where lower energy costs and favorable tax conditions have drawn interest.

This development reflects a broader trend across Latin American nations as they navigate evolving economic dynamics and reassess their stance on cryptocurrency mining.