In Paraguay, Conflict Arises Over Cryptocurrency Mining Electricity Tariff Hike
In Paraguay, a conflict has erupted between legal cryptocurrency miners and the National Electricity Administration (ANDE) over planned electricity tariff increases. On July 19th, ANDE announced an upcoming 16% price hike for miners, starting from August 1st. This decision has raised serious concerns among representatives of the Chamber of Digital Asset Mining (Capamad), which represents the interests of Paraguayan miners.
According to Jimmy Kima, a representative of Capamad, the increase in electricity tariffs will be a serious blow to the industry. In 2022, ANDE already raised fees by 54%, leading miners to sign five-year agreements. Now, with the new increase, up to 70% of legally operating mining companies may have to cease their operations. This poses a risk of losing several thousand jobs and will have a negative impact on planned investments in technological development and infrastructure worth over $1.5 billion.
Kima emphasizes that over 50 legal mining companies operating in Paraguay have already brought in more than $700 million to the country, making it the largest volume of foreign direct investment in its history. These companies play a crucial role in the country’s economy, and the tariff hike could undermine their activities and economic contribution.
Capamad is calling on ANDE to reconsider the decision to raise tariffs in order to preserve an important source of revenue for Paraguay’s economy. It is also worth noting that in the recent past, local law enforcement authorities accused several ANDE employees of operating illegal mining farms, although the administration itself has assured that it is cooperating with the police in investigating this matter.
