The country of Paraguay is enacting legislation to stop cryptocurrency miners who have been using its electrical grid like a feast. Paraguayan lawmakers have had enough of standing by and have put forth a measure that essentially acts as a gigantic stop sign for cryptocurrency mining and all of its associated activities.
In this nation, illicit cryptocurrency mining are not only an annoyance but also a major source of inconvenience, leading to frequent power outages. Fresh out of the oven since April 4, the proposed bill aims to put a stop to these energy vampires.
It has to do with stopping the "building of cryptocurrency mining farms" and postponing the "production, preservation, storage, and marketing" of cryptocurrencies.
The Crunch for Energy
You may be asking yourself, what's the big deal? Because of its plentiful hydroelectric energy, Paraguay has been on the radar of cryptocurrency miners, who see it as the promised land for their Bitcoin digging. They have been coming particularly to the Alto Paraná region, where the country is effortlessly powered by the Itaipu hydroelectric dam, which sits like a crown jewel.
Here's the issue, though. 50 instances of power outages have occurred in this area since February, all as a result of these cryptocurrency miners connecting to the grid illegally. It's more than just a small headache. The electricity grid operator, ANDE, is lamenting the spilled milk, claiming that each mining farm has suffered damages totaling approximately $94,900. This is serious harm.
Rules to the Rescue?
There is a proposal in the draft bill. Paraguay intends to get its act together until it can guarantee enough juice for everyone without these miners causing a blackout every time they decide to dig for cryptocurrency coins, therefore it has imposed a temporary 180-day ban on these activities.
It's not only about keeping the lights on, let's face it. The goal is to establish some structure among the nation's cryptocurrency operations. There are now no rules, which is like leaving your door open in a dubious area. You're merely begging for problems. The proposal highlights that cryptocurrency may be used as a playground for some rather dubious behaviors in the absence of adequate oversight, from money laundering to tax evasion.
Let's be clear, though. Paraguay is open to cryptocurrency. The nation is merely taking action to make sure that a small number of people do not unfairly profit from its natural riches at the expense of the majority.
April 2024, Cryptoniteuae