Paraguay's National Energy Administration (ANDE) suddenly increased electricity prices by 14% for cryptocurrency mining operations, hurting the industry's profits and causing one company to cancel a 400 million investment plan. USD.
The price increase decision was announced by ANDE on June 26, which applies new fee increases to high power consumption groups, including cryptocurrency mining operations, tokens and data centers.
This move faced strong opposition from the business community and Bitcoin advocates, saying it affected the feasibility of these activities in Paraguay.
Senator Salyn Buzarquis harshly criticized this measure for demonstrating inconsistencies in the Paraguayan government's policies, negatively affecting the potential to attract investment in the mining sector. He emphasized that the price increase is unfair, because businesses have invested huge amounts of capital in Paraguay.
“What is the message we send to investors? That they are not welcome, go somewhere else! This is killing the business before the big investment wave is formed.”
Mr. Buzarquis was annoyed.
Mr. Andy Jasmin, Vice President of the Paraguayan Association of Digital Asset Operators, said the price increase has caused some businesses to leave due to policy instability. He revealed that an unnamed company withdrew a $400 million investment after being promised electricity price stability until at least 2028.
ANDE's electricity price increase could have a negative impact on the cryptocurrency mining industry in Paraguay, causing the country to lose its competitive advantage in this potential field.
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