The National Electricity Administration of Paraguay (ANDE) issued a notice on June 26th announcing an increase in electricity rates for the country’s Bitcoin and cryptocurrency mining operations, posing a severe threat to the operational viability of miners in the nation. Local media reports indicate that ANDE has raised the electricity rates for crypto asset mining, blockchain, tokens, and data centers by 14%, potentially affecting the feasibility of these industries’ continued operations in Paraguay.
This decision has also drawn strong criticism from the country’s legislators, with Senator Salyn Buzarquis believing that the measure reflects contradictions within the Paraguayan government and could impact future investments in the sector. Salyn Buzarquis emphasized that it is unfair, considering the substantial funds these companies have already invested in Paraguay.
“What message does this send? You’re not welcome, go elsewhere! This is killing business before the wave of massive investments arrives,” he stated.
Andy Jasmin, Vice President of the Paraguayan Digital Asset Miners Association, noted that the hike in electricity rates has already caused some to flee the country amid the current instability. Jasmin revealed that an unnamed company withdrew a $400 million investment after being promised that electricity rates would remain stable at least until 2028.
In conclusion, these actions signal to investors that Paraguay is not a suitable country for Bitcoin mining due to the lack of legal protection, disrespect for contracts, no investment security, and no confidence to bet on the nation