Paraguay is to receive large investments to install 500,000 Bitcoin miners, as at least eight Chinese economic groups have expressed their interest in relocating their operations to the South American country thanks to its favorable legislation.
According to a report carried Thursday by the Argentine outlet Ambito, the exodus of Bitcoin miners from China to Paraguay and a bill to regulate the mining of digital assets in the country currently under Parliamentarian debate, could trigger large-scale investments in the near future.
Paraguay could receive more than 500,000 cryptocurrency miners in three years if it consolidates its friendly policy towards the cryptocurrency industry, Ambito said.
At least eight Chinese economic groups are said to have an interest in relocating their mining operations to Paraguay, according to Juanjo Benítez Rickmann, CEO of the mining company Digital Assets and advisor to the local bill to regulate cryptocurrencies, who was quoted by the website CriptoNoticias.
Benítez Rickmann said that one of the mining groups has already arrived in Paraguay and plans to install some 90,000 equipment in the coming months. Paraguay has two large hydroelectric dams: Itaipú and Yacyretá. Both generate an estimated 8,500 MW of which Paraguay only consumes 3,300 MW, which would leave an approximate surplus of 5,500 MW of renewable energy from which the cryptocurrency industry could benefit after the present downpout of the Parana river is overcome.
The companies, which remained nameless in Ambito's story, were said to have made contact with Paraguayan miners in recent weeks to analyze the evolution of Parliamentary negotiations to bring forth the much-desired Law which would regulate the industry and commercialization of virtual assets and crypto assets.
The bill is designed for large mining companies to come to Paraguay. In China 6,000 MW were turned off and that coincides with what is in Paraguay that has an energy surplus of 5,500 MW. It is very attractive for them, Benítez Rickmann explained .
He added that in addition to traditional companies which invest in gold, silver, copper or bronze mining, a legislation favorable for Bitcoin in Paraguay, could lure potential investors into that area as well.
Besides Chinese companies, other countries were also interested in reaching Paraguay, such as Taiwan. Whether that would create a conflict of interests remains to be seen.