Paraguay Plans to Lift “Bitcoin Mining Ban”! Surplus Hydroelectric Power to be Sold for Enriching National Treasury

Paraguayan senators sought a temporary ban on Bitcoin mining for at least 180 days earlier this month. However, they have now suspended the ban and are considering selling surplus electricity from the Itaipu hydroelectric plant to miners to generate additional revenue for the National Electricity Administration. The senators will hold a public hearing on April 23 to discuss the pros and cons of Bitcoin mining in the country. They believe that selling excess energy to miners, rather than exporting it to Brazil and Argentina, will provide economic advantages. They estimate that 45 licensed mining companies can generate $48 million in revenue this year and over $125 million by 2025. With the cost of electricity generation at the Itaipu hydroelectric plant at around $22 per megawatt-hour (MWh), the National Electricity Administration expects to achieve a net profit margin of 45% by selling excess electricity to local Bitcoin miners at a price of $40 per MWh. Senator Salyn Buzarquis predicts that this will result in an annual income of $73 million and contribute $17 million in taxes to the Ministry of Finance, thus preventing bankruptcy for the National Electricity Administration and creating more employment opportunities.