Paraguayan Official Unveils Plan to Continue Selling Energy to Bitcoin Miners
The Paraguayan Ministry of Industry and Commerce, led by Javier Gimenez, has outlined the government’s approach to bitcoin mining. Gimenez recently announced that Paraguay will maintain its practice of supplying energy to legal bitcoin mining operations as part of its strategic vision.
During a meeting with Brazilian business representatives, Gimenez shared that Paraguay’s surplus energy could support up to 10,000 industries, although currently only a limited number can benefit from it. Therefore, the government’s decision to continue supplying energy to bitcoin miners is driven by the consistent demand from this sector.
“We are eager to attract more industries, but in the meantime, it would be beneficial to allocate energy to cryptocurrency miners who have a pressing need for it,” stated Gimenez.
The minister emphasized that while the government plans to eventually transition from bitcoin mining to labor-intensive industries to create more job opportunities for Paraguayans, this shift may not be well-received by everyone. Despite potential criticism, he highlighted the president’s unwavering commitment to this strategy.
Gimenez estimated that it would take around three years for Paraguay to fully utilize 50% of its energy output, with only 20% currently being utilized from the Itaipu dam system. This surplus energy is partly exported to Brazil at a reduced rate compared to what some cryptocurrency mining firms pay.
Paraguay has been actively combating illegal bitcoin mining operations, recently shutting down a farm housing over 2,700 miners connected to the grid without proper payment for energy consumption.
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