Paraguay’s National Electricity Authority (ANDE) issued a notice on an increase in electricity rates on June 26. ANDE announced an increase in electricity prices for the country’s Bitcoin and cryptocurrency mining operations, resulting in a serious threat to the operations of the country’s mining operators. According to local media reports, ANDE has increased electricity prices for crypto-asset mining, blockchain, token and data centers by 14%, which may affect the viability of related industries to continue operating in the country.
The decision also drew strong criticism from the country's lawmakers, with Senator Salyn Buzarquis arguing that the measure conveyed contradictions within the Paraguayan government and could affect future investment in the sector. Salyn Buzarquis stressed that this action is unfair given that these companies have already invested a lot of money in Paraguay.
"What signal does this send? You're not welcome, go somewhere else! It's killing the business before a huge wave of investment comes."
Andy Jasmin, vice president of the Paraguay Chamber of Digital Asset Miners, said the increase in electricity bills has caused some people to flee the country amid the current instability. Jasmin said an unnamed company withdrew a $400 million investment because it was promised electricity prices would remain stable until at least 2028.
He concluded that these actions showed investors that Paraguay is not a suitable country for Bitcoin mining because there are no legal protections, contracts are not respected, investments are not guaranteed, and there is no confidence to bet on this country.
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