The reception given to the cryptocurrency mining industry sometimes resembles a game of musical chairs. With countries that suddenly decide not to accept the presence, for various and very often (a)varied reasons. And on the other hand, some emerging all-content nations offer facilities to these key players in the ecosystem. A dynamic very often sustained on the consumption of green energies or wasted surpluses. With Paraguay as the last possible El Dorado, which is preparing to lay the foundations of a favorable legal framework.
Mobility is not just a theoretical view in Bitcoin mining. In particular if we consider the multiple political reversals of certain countries to its required. As in the recent case of Sweden considering whether or not to keep this industry on its territory. Or, in an ever more “media” way, the real witch hunt initiated by China in June of last year. This while it alone held more than 65% of the computing capacity (hashrate) attributed to BTC.
A dynamic also triggered by the cost of energy, which most of the time makes this activity difficult to hire from France. This is why the most important mining farms sometimes move to more welcoming countries. Especially if we consider that some countries do everything to make their job easier, with the help of attractive tax systems. A choice that Paraguay seems about to achieve.
Paraguay – New Eldorado for Bitcoin miners
Paraguay is currently one of the few countries considered Bitcoin-friendly. And its recent position on the subject of mining goes very clearly in this direction. Indeed, the government has just finalized a bill which determines a legal and fiscal framework favorable to this industry.. A document drafted by the Senate, which is part of broader legislation that also includes the trading of cryptocurrencies. A dynamic initiated since last year, the last stone of which consists in put this activity under the responsibility of the Ministry of Industry and Trade (MIC) local. But whose true end point will only be brought by the signature of the current President, Mario Abdo Benitez.
This bill also serves, of course, to punish violators of these new national guidelines. That is to say “natural or legal persons who carry out mining activities or provide services related to cryptocurrencies outside the regulatory framework of this law”. With, at the same time, supervision put in place by the Secretariat for the Prevention of Money Laundering. This is to ensure, among other things, that the purchase of machines authorized for this activity is done in a transparent and official manner.
Despite all this, Paraguay’s stated desire is to become a hub for this Bitcoin mining industry. This is thanks to very cheap energy and largely from ecological sources. An environmental as well as a strategic necessity, in order to limit the capacity of the Bitcoin network to be part of a sustainable approach. And a logic that could end up aligning itself with the policy of El Salvador, the first country in the world to have made BTC its official currency. But that’s another story…