Paraguay Asunción Government Palace City Center May 2018
Paraguay will leverage its surplus energy to support bitcoin mining as part of an economic transition, according to Javier Gimenez, the Minister of Industry and Commerce. This initiative aims to utilize the energy sold to legal bitcoin miners to rebuild Paraguay’s industrial sector.
In a meeting with Brazilian representatives, Gimenez explained that Paraguay’s energy surpluses could power 10,000 industries, but only a few currently benefit. The government intends to continue supplying energy to bitcoin miners, who consistently demand this power.
“We are rushing to attract industries, but it would be good if we give energy to cryptocurrency miners, where there is demand, so that they use it in the meantime,” said Gimenez.
Gimenez revealed that the government plans to replace bitcoin mining with labor-intensive industries, creating jobs for Paraguayans. He acknowledged that this strategy might face criticism but emphasized the president’s commitment.
The transition period is estimated to last three years, during which Paraguay aims to utilize 50% of the energy generated. Currently, only 20% of the power from the Itaipu dam, one of the world’s largest hydroelectric plants, is used. Some of this surplus energy is sold to Brazil at a third of the price paid by cryptocurrency mining companies.
Paraguay has also been addressing illegal bitcoin mining. Recently, authorities disconnected a farm with over 2,700 miners that were evading energy payments by tapping directly into the grid.
