The President of Paraguay blocked the bill on preferences for miners

Posted 01 September, 2022

Paraguayan President Mario Abdo Benitez has vetoed a bill to regulate the cryptocurrency industry. The head of the country explained his decision by the fact that high electricity consumption by mining can hinder the development of the national industry.

A presidential decree dated August 29 states that cryptocurrency mining is characterized by high electricity consumption, capital intensity, and low labor utilization, which does not create added value. According to the head of Paraguay, the soft conditions for miners proposed in the bill (the tax rate is only a few percentage points higher than for industry) can stimulate the development of mining instead of stimulating the industry.

The proposed bill set out rules for mining, trading, brokering, exchanging, transferring, storing, and managing crypto assets, but the government chose to ignore this type of activity, which is now in the “grey” zone, the senator who promoted this bill wrote on Twitter (the social network is blocked in Russia). , Fernando Silva Facetti.

According to him, the president is destroying the opportunities for new investors to enter the industry and the formalization of many small and medium-sized companies involved in mining and cryptocurrencies.

Last week, in Argentina, neighboring Paraguay, where the use of cryptocurrencies is legally allowed, a pilot project was launched that will allow residents of the country to pay with cryptocurrencies when paying for goods and services in more than 90 million stores around the world that have an agreement with Mastercard.

 

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