President Mario Abdo has vetoed a law, after it was passed in Congress, that would have legalized crypto mining operations. Bitcoiners had hoped that Paraguay would follow El Salvador’s footsteps in opening up to crypto.
The president’s decree vetoing the proposal stated that cryptocurrency mining is “characterized by its high consumption of electrical energy, with intensive use of capital, but low use of labor (..) the significant amount of energy required could compromise the development and expansion of national industry.”
The move will disappoint foreign miners hoping to exploit the country’s subsidized energy prices. The crypto website Decrypt published an article last month titled, “Paraguay One Step Closer to Being Paradise for Bitcoin Miners – A bill supporting crypto mining in the South American nation now awaits presidential approval”.
The environmental concerns around crypto should worry a country like Paraguay, which is currently experiencing a historic drought that has forced its central bank to cut the annual growth prediction in 2022 from 3.7% to just 0.2%, primarily due to its soy harvest being virtually wiped out with the current climate conditions.
The lack of enthusiasm this year compared to last may also have to do with the state of the crypto market. Since July, the price of Bitcoin has hovered around 20,000 USD for the first time since 2020. Meanwhile, Nayib Bukele’s experiment has been largely deemed a expensive failure, as El Salvador’s Bitcoin law approaches its one year anniversary.
By Kawsachun News