Paraguay Warns About Growth of Illegal Bitcoin Mining Operations and Effect on Power Stability of the Country – Mining Bitcoin News

According to National Power Administration statements, illegal mining activities could cause instability in Paraguay’s electricity system. According to the National Power Administration, the surge in mining activity is having a negative impact on the stability of Paraguay’s power system. Many miners have been illegally plugging in and are consuming large amounts without being paid.

Paraguay Underground Mining Operations Grow

Paraguay’s popularity as a country with cheap power tariffs for bitcoin mining is hurting the electric grid and might work against the stability of the power system in the country. ANDE, or the National Power Administration declared Oct. 28th that the bitcoin mining boom had caused electricity consumption in the Alto Parana department to rise dramatically, and many illegal operations to connect to the grid.

Miguel Angel Baez is the technical director at the ANDE Organization. He said that this has led to increased vigilance within the area, as well as supervision operations in order to identify covert connections to the Brazilian border.

Baez claims that two more operations will appear if the company disconnects one operation. These covert operations could reportedly consume the equivalent energy of an entire apartment block in one day.

The area is familiar with this situation. The National Power Administration had previously shut off power for some miners involved in power-related criminal acts. Alfredo Arguello from the East Regional Management Division stated in August that during their supervision visits, they found irregularities such as bypass connections and direct connections. These irregularities led to monthly losses of $400,000

Extra Bitcoin Mining Fees

Because of the current situation, the National Power Administration opposed the proposed fee in a cryptocurrency bill. It set the minimum fee at 15% less than that collected from equivalent companies. The organization indicated that it was willing to support the possibility of vetoing the bill due to this consideration and proposed a new set power fees.

President Mario Abdo vetoed the cryptocurrency bill on September 2, citing that the activity is energy-intensive and has little labor demand. On Sept. 30, the Paraguayan Senate rejected the veto and Congress moved to adopt the bill with no presidential support.

Paraguay remains an attractive location for Bitcoin mining companies despite this development. (a Bitcoin mining company) announced on Oct. 14 that it has begun construction of two mining sites in Paraguay that will generate 12 megawatts of hydroelectric energy.

This story contains tags
Alfredo Arguello, ANDE, Bitcoin, Bitcoin mining, mario abdo, Miguel Angel Baez, Paraguay, paraguayan congress,, Senate, veto

Do you agree with the warnings about illegal underground mining in Paraguay and what do your thoughts? Leave a comment below.

Sergio Goschenko

Sergio is a Venezuelan cryptocurrency journalist. His entry into the cryptocurrency world in December 2017 was when it saw a price surge, and he describes himself as being late to this game. His background is in computer engineering, but he also lives in Venezuela and was impacted by the crypto boom at a socio-economic level. He offers an alternative perspective on cryptocurrency success and the benefits it has for the underbanked.

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