Monday, April 22, 2024

The Senate of Paraguay will debate removing Bitcoin mining from the “gray area”

Bitcoin mining has been a constant source of debates and disputes among miners and the authorities. The primary reason remains the heavy power demand of mining equipment. On top of that, illegal crypto mining has caused power grid problems in many countries. Many power grids have failed to supply regular domestic electricity due to heavy demand and illegal use by miners. In the wake of this situation, the Senate of Paraguay will debate about how to categorize Bitcoin mining.

The situation in Paraguay is not like that of Kazakhstan or Iran. Unlike these countries, Paraguay does not suffer from a power shortage. Instead, the country generates huge amounts of surplus power supply from its hydroelectric power plants. Member of Parliament Carlos Rejala is at the forefront of this movement, and he has also promised previously that Paraguay will legalize Bitcoin and Bitcoin mining. However, those promises never came to fruition. The new set of debates will focus on whether Bitcoin mining should be legalized or if the surplus power supply will go towards some other use. What will eventually come of these debates and discussions is still under speculation.

Senators from the United States had also previously suggested using wasted energy sources like natural gas for Bitcoin mining. As of now, it is the only probable alternative to sustain mining, apart from switching to proof of stake mining. Like many other countries, Paraguay is going through the same dilemma now. However, its pro-crypto policies might soon result in legalized mining in the country.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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