Paraguay government steals from legal Bitcoin miners, senator claims
Key facts:
-
For Buzarquis, the increase is detrimental to an industry that pays four times more VAT.
-
In his opinion, “those who steal energy are rewarded and those who invest in the country are punished.”
Amid the confusion over the increase in electricity rates for legal Bitcoin miners in Paraguay, Senator Salyn Buzarquis has come forward to question the government’s decision, which he describes as a “robbery” against those who work and invest in the country.
In a video posted on social media, Buzarquis questioned the increase in Up to 16% off Bitcoin miners’ electricity bill announced by the National Electricity Administration (ANDE) last week.
As you see, legal Bitcoin miners, who pay four times more for Paraguayan electricity compared to other industries or even countries, such as Argentina and Brazil; They are victims of ANDE’s decision. He claims that, with this, the government “kills the business before the great wave of investments has been born due to the cascading effect.”
Buzarquis recalled that, currently, the government of Paraguay receives more than 445 million dollars of the large mining companies that operate from that country and that use the surplus energy “paying four times more than Brazil and Argentina.”
“Now ANDE has suddenly raised the energy tariff by up to 16%, which is making the business unviable for mining companies in a deceitful and unfair manner. It is changing the rules of the game after these companies have invested a huge amount of capital in the country,” Buzarquis repudiated.
«A lot of distrust»
Buzarquis predicts that, due to this decision, There will be “a lot of distrust” on the part of mining companies to operate in Paraguay and sign contracts with ANDE. Therefore, he insisted to the government: “Stop robbing those who work, those who pay taxes.”
In another message, the legislator questioned the fact that ANDE is undertaking the rate increase “to mitigate its losses, its corruption and its own ineffectiveness.” All of this, “at the expense of the country’s development and against investments and the highest interests of the Republic.”
“What is the message? Destroy genuine investments that pay taxes in Paraguay, continue enriching the ANDE elites with the theft of energy and continue giving away our valuable energy at banana prices to Brazil,” he said.
In this way, Buzarquis rejected that while the ANDE increases the rates for Bitcoin miners, It is also in a bidding process to sell Brazil 100 MW of electricity at half the price paid by the miners, that is, 20%.
For Buzarquis, This government policy is based on applying “stick and club” against legal Bitcoin miners, while allowing illegal ones to “continue stealing electricity.”
“I think it is unfair and perverse that people who pay four times more, pay their taxes, invest in Paraguay, are penalized, and those who steal energy are rewarded. How will employment grow if companies that invest in the country are persecuted?” said Senator Buzarquis.
Increase in electricity rates
As CriptoNoticias reported on June 28, the government of Paraguay, through ANDE, announced an increase in electricity rates for mining operators registered in that country. In general, rates were raised to 16%according to the type of consumer. This was an increase recorded almost two years after the last movement in this direction.
The increase in fees for legal miners has caused discomfort throughout the industry. The Paraguayan Chamber of Digital Asset Mining stated that, with the measure, Paraguay “loses significant revenues.” This is due to the “loss of employment and confidence in the government of Santiago Peña.”
The increase in electricity rates for Bitcoin miners occurs In the midst of the Paraguayan government’s crusade against this illegal activity. So far, almost 10,000 Bitcoin ASIC miners have been seized, used to process the Bitcoin network but from apparently illicit electrical connections.
Paraguay, seen as a suitable place to build the Bitcoin mining industry due to its renewable energy sources and relatively low energy prices, It has been the epicenter of clandestine miningwhich has spread across much of the territory of the Guarani nation.
The ANDE argues that illegal Bitcoin mining farms are the cause of power outages in Paraguayan towns. That is why they have already carried out More than 70 interventions in clandestine data centers since the crusade against illegal mining began back in 2019.
