Paraguay’s Senate has reached the number of votes needed to reject President Mario Abdo Benitez’s veto of a bill that seeks to regulate bitcoin mining and cryptocurrency trading in that country.
The executive branch vetoed the entire legislation at the end of last month. Among other arguments, the document presented by Abdo Benitez Calls Bitcoin Mining a “Transitional” Business Thus it “has no long-term effects on the country’s development,” CriptoNoticias reported at the time.
However, in a new development, 33 senators considered it The president’s arguments are not entirely valid to ignore the billTherefore, they by a majority rejected the presidential veto.
Now, with the Senate voting to override the veto, Bill to regulate bitcoin mining will return to the House of Representativeswhere it must also gather a qualified majority to overrule the Executive’s decision.
Senator Enrique Bozárquez believes that the presidential veto is based on misconceptions that harm the ecosystem and the country. I don’t agree with the claim that bitcoin mining does not create jobs.
“The truth is that in Paraguay there are thousands of small miners who bring an income to their homes,” Bozárquez told local media.
Accurate concepts and clear rules for Bitcoin mining in Paraguay
On the other hand, the legislator believes that it is important to consider that “energy produced and unused is wasted, not stored”, and that Bitcoin mining can take advantage of this to strengthen the growing industry in Paraguay.
Paraguay has a primary cryptocurrency mining industry, especially due to the high availability of clean and cheap energy in the country.
Therefore, Representative Sebastian Garcia, one of the main promoters of the bill, said that the intention of The suggestion is that bitcoin miners can operate formally By creating an “important motivator” than setting “clear rules”.
Garcia added that the proposed law aims to formalize the activity based on a registry that sets standards and requirements with Energy Consumption Plan for Bitcoin Miners.
After the presidential veto of the crypto law, it is strange that the head of the National Electricity Administration (ANDE), Felix Sousa, spoke of an imminent decision to set rates for “energy-intensive” sectors. In this sense, It is suggested to set a rate for Bitcoin miners, at least 15% higher than the rate set for the industry.
Sosa acknowledges that there are many bitcoin mining companies in the country that “need to settle.” He adds that about 80 companies are requesting energy from ANDE to start mining operations in the country.
He added that he would request before the National Congress that the state electricity company sell up to 300 megawatts to these new mining companies and estimated that the income could be in the order of $119 million.
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