Paraguayan miners urged the State Electricity Board to reconsider the upcoming price increase
Crypto miners in Paraguay have announced that the government has raised the price of incoming electricity, saying it will harm the country's economy and cause losses of up to $1.5 billion.
On July 19, Administración Nacional de Electricidad (ANDE) – Paraguay's national electricity grid operator – announced in a press release that it will continue to increase the price of electricity proposed for legal crypto miners.
According to ADN, the price increase will be effective from August 1.
Legitimate crypto miners may go out of business.
In a statement sent to Cointelegraph, Jimmy Kim, spokesman for the Chamber of Digital Assets Miners (Capamad), expressed his disappointment with the decision to increase the cost to miners. Kim explained:
“We are deeply disappointed by the confirmation by the Paraguayan State Electricity Board that electricity prices for legal cryptocurrency miners in the country will increase by 16% from August 1. This will follow a 54% increase in fees when miners start signing up in 2022. A new five-year agreement with Aden. Agreement.
Capamad, an industry body representing legal Paraguayan bitcoin and altcoin miners, believes that AED's price hike will make legal crypto mining unsustainable in Paraguay. Kim said up to 70% of legal operators could be out of business starting in August.
A spokesman for the mine also said the incident would result in thousands of direct and indirect job losses. In addition, Kim said the event poses a threat to more than $1.5 billion in planned technology and infrastructure investments.
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The miners urged the electricity board to reconsider the price hike
On July 19, ADB announced that its efforts to legislate to protect the integrity of the electricity system were due to the interruption of electricity supply due to crypto mining. The government has announced tougher penalties for illegal electricity theft.
Realizing the need to crack down on illegal crypto miners, Kapamad urged the government to reconsider the move for legal crypto miners. Kim said:
“Our members are now dealing with difficult decisions about how to face life. We call on ADB to urgently review the proposed increase in order to protect a vital source of income for Paraguay's economy.
Kim added that there are more than 50 companies that operate legally and have the potential to contribute to the economy. According to the spokesman, mining companies have invested more than 700 million dollars, which Kim believes is “the highest foreign direct investment (FDI) the country has ever received.”
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