Paraguayan lawmakers, initially proposing a draft Bitcoin mining ban on April 4, which would last for 180 days or until new legislation is introduced, are now reconsidering their stance. The ban, aimed at addressing the use of the country's cheap hydropower resources by Bitcoin miners, has been met with significant opposition. Critics, including Hashlabs Mining's co-founder Jaran Mellerud, argue that enforcing such a ban could cost Paraguay's economy more than $200 million annually, given the country's attraction of Bitcoin miners due to its low operating costs, estimated at $0.05 per kWh for legal miners with a capacity of 500 MW. In light of these concerns, senators are now exploring alternatives to the ban, including a proposal to sell excess energy from the world's second-largest hydropower station to Bitcoin miners instead of exporting it to Brazil and Argentina, a move expected to generate more than $125 million. This shift in approach is seen as a potential boon for entities such as Marathon Digital Holdings, a major Bitcoin mining company that expanded into Paraguay last November.
COMMENT: If approved, this could positively impact Marathon Digital Holdings, one of the largest Bitcoin miners, which expanded into Paraguay last November. https://t.co/IKzU4cNeAI
PARAGUAYAN LAWMAKERS CONSIDER SUPPORTING BITCOIN MINING INSTEAD OF BANNING - Paraguayan senators have paused progress on the proposed cryptocurrency mining ban, opting for a strategic shift. - Instead of enforcing the ban, officials are exploring the potential of leveraging… https://t.co/lq4x5ecrDd https://t.co/MtdN7WTx9j
UPDATE: PARAGUAYAN LAWMAKERS RECONSIDER CRYPTOCURRENCY MINING BAN, PROPOSING TO DIVERT SURPLUS ENERGY FROM THE NATION'S HYDROPOWER STATION TO #BITCOIN MINERS
Paraguayan senators have paused progress on a cryptocurrency mining ban and are considering selling excess energy from the world's second-largest hydropower station to Bitcoin miners instead of exporting it to Brazil and Argentina, expected to bring in more than $125 million.… https://t.co/h9adTCHG2z
Paraguayan lawmakers are now urging a rethink of the proposed #Bitcoin mining ban. https://t.co/wPZI3Tgo8M
NEW: “Banning #Bitcoin mining could cost Paraguay more than $200M a year, assuming the country has 500 MW of legal miners paying $0.05 per kWh in operating expenses,” says Hashlabs Mining’s co-founder and chief mining strategist Jaran Mellerud https://t.co/MS7TZPRr5G
If a Bitcoin mining ban will cost Paraguay's economy $200 million per year, how damaging would a similar ban be in the United States? President Biden's proposed 30% mining tax is so punitive it is a de facto ban. The U.S. must embrace innovation not big government mandates. https://t.co/omEEmNrcR5
Paraguayan lawmakers proposed a draft Bitcoin mining ban on April 4. If passed, the ban will last for 180 days or until new laws are introduced. Paraguay attracts many Bitcoin miners because of its cheap hydropower resources. Cointelegraph reported https://t.co/CLrALhPxV4
Enforcing a Bitcoin mining ban in Paraguay could cost the country $200 million annually, argues @JMellerud. https://t.co/yI1OHvcoFZ