Just when it seemed like Paraguay would become one of the few countries globally with a regulatory framework for the block reward mining sector, the country’s president vetoed a bill that sought to police the industry.
In a tweet, the office of President Mario Abdo Benítez’ revealed that it had shot down the bill, expressing concern about energy consumption in an accompanying statement.
Por Decreto N° 7692 el Poder Ejecutivo objeta totalmente el proyecto de ley que busca regular la criptominería en el país 👉 https://t.co/sDHUERhUe1 pic.twitter.com/VpgQij4AFh
— Presidencia Paraguay (@PresidenciaPy) August 29, 2022
The bill, which had been passed by the country’s Senate in July, sought to officially recognize the country’s block reward mining sector as an industrial activity. This would entitle the miners to electricity provided by the National Electricity Administration (ANDE), with the cost capped at a maximum of 15% above the household rates.
The president is opposed to passing off BTC mining as an industrial activity, La Nacion reports, as its energy consumption is extremely high and its labor demand is extremely low, contrary to all the other industries under this category.
While the Senate had passed the bill, it has received widespread criticism in the country. Paraguay’s Ministry of Commerce warned that the decree, if passed into law, would promote an industry that “requires a significant amount of energy that can compromise the development and expansion of an inclusive and sustainable national industry.”
The Ministry even warned that if the president passes the decree, it will force Paraguay to import electricity in the next five years.
The country’s national electricity grid operator ANDE also opposed the bill. Speaking a month ago with a local outlet, ANDE’s president Felix Sosa claimed that the bill would be detrimental to his institution and would urge the president to partially veto it.
Sosa questioned the 15% cap on the cost of electricity provided to the miners. He said this would not be enough to cover the added cost of accommodating the miners. If the bill were to be passed, ANDE would require miners to pay in advance for their power and only allow payments in the U.S. dollar.
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