A new report shows that the Bitcoin mining industry in Paraguay only created 383 jobs, with 66% of companies having no registered workers.

A report presented to the Paraguayan Senate last week raised concerns about the economic efficiency of Bitcoin mining in the country. Based on data from the Institute for Social Care (IPS), the report found that the cryptocurrency industry, despite consuming significant amounts of electricity, only created 383 jobs nationwide, which equates to a ratio of 1.58 jobs per MW of electricity contracted, a figure that is quite low given the industry’s energy consumption.

Notably, 66% of the 40 Bitcoin mining companies that have contracts with Paraguay’s National Electricity Authority (ANDE) do not have any registered workers and do not contribute to the social security system. This suggests that the companies may be operating illegally with social security services, or using third-party companies for their operations without direct workers.

Number of jobs created by the cryptocurrency industry in Paraguay. Source: abc.com.py

The report also notes that even among the 20 companies that contribute to IPS, the number of jobs remains low relative to the amount of electricity consumed. Furthermore, nearly half of Bitcoin mining companies contribute less than 1% of their electricity bills to social welfare, raising concerns that the industry is benefiting from subsidized electricity prices without contributing adequately to Paraguay’s economy and society.

The report’s findings echo similar concerns raised by former President Mario Abdo in 2022, when he vetoed a bill to legalize cryptocurrency mining. Among the reasons Abdo cited for his decision were the high energy consumption, capital-intensive nature, and low employment rates of the Bitcoin mining industry.