Paraguayan Minister Unveils Future Economic Strategy Centered on Bitcoin Mining for Industrial Transition
Javier Gimenez, from the Paraguayan Ministry of Industry and Commerce, revealed that the government plans to take advantage of the energy sold to legal bitcoin mining operations. Gimenez stated that selling Paraguay’s energy to bitcoin mining companies is part of the government’s strategy, which seeks to rebuild its industry in three years as part of a transitional phase.
Paraguayan Minister Reveals Government Will Keep Selling Energy to Bitcoin Miners
Paraguay has revealed its strategy regarding bitcoin mining. Javier Gimenez, the Minister of Industry and Commerce, recently disclosed the new direction Santiago Pena’s government will follow, stating that the country will keep selling energy to legal bitcoin miners.
In a meeting with Brazilian representatives of the joint commerce chamber, Gimenez explained that Paraguay’s energy surpluses would power 10,000 industries, but only a few can take advantage of it now. This is why the government will keep providing energy to bitcoin miners, who have a steady demand for this power.
Gimenez stated:
We are rushing to attract industries, but it would be good if we give energy to cryptocurrency miners, where there is demand, so that they use it in the meantime.
The minister disclosed that, after some years, the government would substitute bitcoin mining activities with labor-intensive industries, bringing jobs to more Paraguayans. However, he acknowledged that this approach would not be popular among some circles. “The press attacks you every day when you want to implement an idea like this, but the president is not afraid,” he stressed.
The country would need three years to transition and take advantage of 50% of the energy generated, Gimemez estimated. Currently, only 20% of the power generated by the Itaipu dam system, one of the largest hydroelectrical power central in the world, is used. Part of this energy surplus is rerouted to Brazil, which pays a third of what some cryptocurrency mining companies pay for this power.
Paraguay has been battling illegal bitcoin mining activities, having recently disconnected a farm with over 2.700 miners linked directly to the grid, evading payments for the energy used.