Paraguay’s Senate has voted to deny the President Mario Abdo’s total veto over a cryptocurrency bill that was proposed on September 2. According to the Senate, passing the bill will benefit the nation due to its impact on cryptominers energy consumption and income from mining taxes.
Paraguayan Senate Affirms Cryptocurrency Bill Approval
When it comes to passing the cryptocurrency bill, the Paraguayan Senate will be ready to oppose the president. The President Mario Abdo had a total veto on the initiative at the beginning of the month. However, the Senate has reiterated its support for this bill during a fresh discussion and rejected the move.
The senators claimed that the bill contains several provisions that will benefit the state as well as the crypto industry. Enrique Salyn Buzarquis (Senator) vowed support for the bill and stated that Paraguay should collect taxes on crypto mining activity. He explained:
For the cryptocurrency company, it is more efficient to charge for what they correspond. So I defend the bill.
Another senator Abel Gonzalez also supported this sanction. He stated that energy should not be wasted but used to create income for the state. Sen. Daniel Roja supported the bill once again. He explained how it could help to use energy to generate new jobs through cryptocurrency.
All 33 Senators disapproved of the presidential veto over the mentioned bill.
History and possible scenarios
After considering many operational and environmental issues, the cryptocurrency bill was fully vetoed. If the growth of the cryptocurrency mining sector continues, then the government might need to import power in the near future. The rejection document considers that cryptocurrency mining is “characterized by its high consumption of electrical energy, with intensive use of capital and little use of labor.”
Power fees that were proposed for crypto-mining operations in the bill have also been criticized by the government, with some officials stating that they are inadequate.
The cryptocurrency bill is now being passed to the National deputy chamber. This will need to debate whether or not it rejects the president’s veto. If that happens, the bill can be finalized, even though it does not have presidential support. It is likely that the matter will be resolved by 2023.
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