Paraguay’s National Electricity Administration (ANDE) issued a notice on June 26 announcing an increase in electricity tariffs. ANDE declared a hike specifically targeting Bitcoin and cryptocurrency mining operations in the country, posing a serious threat to miners’ operations. According to local reports, ANDE raised electricity prices for cryptocurrency mining, blockchain, tokens, and data centers by 14%, potentially jeopardizing the feasibility of these industries continuing operations in the country.
The decision has sparked strong criticism from lawmakers in the country. Senator Salyn Buzarquis believes this move signals internal contradictions within the Paraguayan government, potentially impacting future investments in the sector. Buzarquis emphasized that this action is unfair given the significant investments these companies have already made in Paraguay.
“What message does this convey? You’re not welcome, go elsewhere! This stifles business before a massive wave of investment even arrives,” said Buzarquis.
Andy Jasmin, Vice President of the Paraguayan Chamber of Digital Asset Miners, stated that the tariff increase has already driven some to flee the country amid current instability. Jasmin noted that an unnamed company withdrew a $400 million investment because they were promised stable electricity rates until at least 2028.
In conclusion, these actions signal to investors that Paraguay may not be a conducive environment for Bitcoin mining, lacking legal protections, contract enforcement, investment security, and confidence in the country’s stability.
