Paraguay Mulls 'Temporary' Bitcoin Mining Ban Citing Energy Issues
Parliamentarians in Paraguay have proposed a temporary ban on Bitcoin mining, which, according to them, is disrupting the nation's electricity supply.
- The proposal, presented on April 4, includes 14 senators who advocate for the halting of 'cryptocurrency creation, storage, and the operation' of Bitcoin and other cryptocurrency mining farms in the country.
- The proposed ban would remain in effect for 180 days or until proper regulations are devised. Their proposal is driven by the belief that it's sensible to restrain such activities until regulations are put in place.
The ban is intended to continue until Paraguay's National Electricity Administration (ANDE) can ensure they have 'adequate infrastructure to meet the energy demands of Bitcoin and crypto mining without destabilizing the rest of the grid.'
- The draft states that Bitcoin miners have gravitated towards the Alto Paraná region, located in the southeast of the country near the borders of Brazil and Argentina. This region is home to the Itaipu hydroelectric dam, the world's third-largest, which fulfills all of Paraguay's domestic electricity demands.
- Since February, there have been '50 instances of power outages in the region due to miners secretly and illegally tapping into the electric grid', was stated in the bill.
