Chinese investors to begin crypto mining in Paraguay, pending favorable legislation
RIO DE JANEIRO, BRAZIL – The exodus of bitcoin miners from China, and the introduction of a bill to regulate digital asset mining in Paraguay could trigger a wave of major investment in the country. Paraguay could host more than 500,000 cryptocurrency miners within three years if it consolidates its Bitcoin-friendly policies.
Currently, at least eight Chinese business groups are said to be interested in moving their mining operations to Paraguay. This was reported to CriptoNoticias by Juanjo Benítez Rickmann, CEO of Digital Assets and advisor on the local cryptocurrency regulation bill.
The entrepreneur informed that one of the mining companies has already arrived in the country and will install around 90,000 units in coming months.
Read also: Check out our coverage on Paraguay
The companies, whose identities were not disclosed, have been in contact with Paraguayan miners in recent weeks. They want to see how the deliberations in Congress on the “Law for the Regulation of the Industry and Commercialization of Virtual Assets and Crypto-Assets” are progressing.
“The bill aims to encourage large mining companies to come to Paraguay. In China, 6,000 MW have been shut down, which coincides with Paraguay’s situation, which has an energy surplus of 5,500 MW. That is very attractive for them. I have many names of companies from all over the world that are very interested in coming to Paraguay,” explains Benítez Rickmann.
According to the CEO of Digital Assets, some companies invest in the traditional mining industry of gold, silver, copper, or bronze. With favorable legal conditions for Bitcoin that could be approved in Paraguay, companies would be willing to invest in cryptocurrencies.
Although Benítez Rickmann highlighted the interest of Chinese companies, he assured that large consortia from other countries are also interested in setting up in Paraguay. Some come from Taiwan as they have established contacts through the island’s embassy in Asunción, which is noteworthy because it is a matter of diplomatic relations.
Renewable energy for bitcoin mining
Paraguay has two large hydroelectric power plants: Itaipú (Paraguay-Brazil) and Yacyretá (Paraguay-Argentina). Both generate an estimated 8,500 MW, of which Paraguay consumes only 3,300 MW. In total, there is a surplus of about 5,500 MW of renewable energy, a huge number that could be used by the cryptocurrency industry.
Chinese companies are said to be interested in Paraguay because they would use renewable energy, be located in a Bitcoin-friendly country, and have a skilled local workforce. On the Paraguayan side, a group of lawmakers is seeking passage of the bill because it would bring new investment and tax payments and put Paraguay on the world map of countries with computing power on the Bitcoin network.
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