Paraguay’s President Dismisses Complaints About Power Fee Hikes From Bitcoin Mining Companies, Asserts High Interest Remains
Santiago Peña, the President of Paraguay, recently dismissed the complaints that bitcoin mining farm operators have voiced against the power fee hikes that ANDE has enacted for these activities. Peña stated that these price increases don’t need to be consulted with the operators and that more companies in the industry are waiting to enter the country.
Paraguay’s Santiago Peña Interest in Paraguay as Bitcoin Mining Haven Is High Even With Recent Power Fee Hikes
The government of Paraguay supports enacting a power fee hike of up to 14% that affects bitcoin mining operations. Santiago Peña, Paraguay’s president, recently disregarded the complaints of several bitcoin mining operators on the effect of this rise on the viability of their operations in the country.
Peña stated that, while this hike would reduce the margins of the business, it would not discourage bitcoin mining operators from maintaining their activities in Paraguay. He also highlighted the industry did not provide a significant number of jobs.
Peña also stated that the contracts signed with these companies did not include any clauses forcing the government to consult with them before enacting a fee hike. “The contract says it can increase if the cost of energy rises,” he stressed.
Finally, he specified that even with this price increase, there were still lots of bitcoin companies interested in setting up in Paraguay. Peña declared:
We are preparing for the arrival of companies that we believe will generate dynamism and will be part of a technological ecosystem in which we are working, to turn Paraguay into a technological center.
Capamad, a bitcoin mining association that integrates mining heavyweights like Bitfarms in the country, bashed Peña’s remarks, stressing that the contracts signed with the National Power Association (ANDE) did stipulate that any changes should be applied with mutual consent.
The organization rejected the government’s course of action, assessing that these were measures that “further damage the country image and compromise the long-awaited investment grade by violating legal certainty.”
Penguin Group, part of Capamad, has already secured a 400MW site in Brazil, and other companies would be eyeing the neighboring country to migrate their mining operations.