Paraguay's congress passes crypto bill, sends to president
Quick Take
- Paraguay’s Senate has passed a major bill pertaining to regulation of crypto mining and trading.
- The new regulation, which still needs approval from the executive branch, has major implications for the country’s extensive hydropower resources.
Paraguay could soon have a new regulatory framework.
On July 14, Paraguay's Senate passed a bill setting up a new licensing for crypto exchanges and rules for miners, among other areas. The bill is now headed for the president's desk.
Senator Fernando Silva Facetti tweeted of one advantage: being able to monetize Paraguay's energy resources:
A landlocked country of 7 million people, Paraguay relies heavily on hydroelectric generation and is a major energy exporter. Still, the country's electricity consumption has doubled since 2010, while generation is on the decline. The state power operator, Administración Nacional de Electricidad (ANDE), is pursuing a master plan to in coming years.
As The Block previously reported, Paraguayan central bank has concerns that a legal regime for cryptocurrency would entail drawbacks including “electricity consumption" associated with crypto mining as well as "loss of reputation and costs for the financial system."
The debate over whether crypto mining can facilitate more renewable energy generation and strengthen grids, or if it simply saps resources, is ongoing around the world.
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