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December 3, 2021

Paraguay legislators Contemplating Crypto changes

Paraguay wants to make progress in the crypto sector. El Salvador legalized cryptocurrency as legal tender. Another government in the region that is considering the same is Paraguay. Paraguay is considering making Bitcoin and also crypto mining legal. It is also looking at the possibility of allowing industrial miners access to the country’s large hydroelectric power capacity. The favor crypto progress has in Paraguay is largely due to more and more legislators favoring key proposals for the same.

About the Proposed Bill in Paraguay

The legislation has been under discussion and planning for a number of months now. It was first tabled in Paraguay’s house of the Senate on December 2, according to Ultima Hora. It happens to be the result of collaboration between a collection of miners and legislator, MP Carlos Rejala. The MP shared some insights on the development of the bill roughly around the same time as cryptocurrency legislation was making progress in El Salvador. That was when the Salvadorian President, Nayib Bukele declared that Bitcoin had become legal tender in their country, just as the U.S. dollar was. The Paraguayan MP created intrigue about the pending development but informing people on social media that the legislation would include bitcoin-related “surprises”.

Public Response

Those in the public that was interested in this development were disappointed with the bill when it was finally published. Most of these people were hoping that this bill would be much like that of El Salvador. One commentator called the bill a “huge nothing burger”, to illustrate exactly how disappointed they were with the development. The legislation proposes to regulate Bitcoin and crypto mining but somewhat conservatively. However, this law, if ratified, may help local miners who intend on attracting international investors for crypto mining collaboration and business deals.

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As of now, Paraguay produces excessive power through its hydroelectric power stations. This power is produced by two plants; Itaipú and Yaciretá. Once ratified, the legislation will let miners locate themselves into data centers close to the power stations. They will also be allowed to utilize the excess power produced at these hydroelectric power stations.

These two stated hydroelectric power stations both have high speeds. In fact, for this reason, the waterfalls there in Paraguay are famous for just how powerful they are. Those in support of the proposed legislation are saying that this legislation would be good for the environment. They argue that the legislation would encourage miners towards cleaner energy and away from non-renewable energy solutions.

Response from Members of the Senate of Paraguay

It seems the bill is growing more favored by the members of the senate. The MP, Rejala seems to have found common ground with another MP, Fernando Silva Facetti, on supporting this bill. Facetti is a reputable member of the senate of Paraguay. With Facetti favoring this bill, it has drawn favorable attention and interest from others in the house. Facetti commented on the proposed bill, stating that it was very innovative. He added that digital mining is a reality in Paraguay already. He asked his counterparts to consider crypto mining as a new industry sector of Paraguay. Facetti added that crypto mining utilizes specialized machines, requires specialized workers, and utilizes significant volumes of power.

He then went on to say that the mining activities generate an end product that can be called “crypto-assets”. Facetti stated that these assets would require visibility in the marketplace, like any other marketable product. Other members of the house that have since shown support for the proposed bill include MP Tony Apuril and MP Juan Bartolomé “Ancho” Ramírez. At some point, MP Facetti stated that discussion of the bill may be pushed back for up to a week. However, it looks like the proposed legislation may soon be discussed.