Paraguay’s President Dismisses Complaints About Power Fee Hikes From Bitcoin Mining Companies, Asserts High Interest Remains

Paraguay’s President, Santiago Peña, has dismissed complaints from bitcoin mining companies about recent power fee hikes, asserting that there is still high interest in the industry. The government supports the increase in fees, which can reach up to 14%, despite objections from mining operators. Peña stated that while the hike may reduce profit margins, it would not deter companies from operating in Paraguay. He also emphasized that the industry does not provide a significant number of jobs. Peña highlighted that contracts with the mining companies do not require government consultation before enacting fee hikes. He further noted that despite the price increase, there are still many bitcoin companies interested in setting up operations in Paraguay. However, Capamad, a mining association including Bitfarms, criticized Peña’s remarks, arguing that mutual consent should be required for any changes in the contracts with the National Power Association. Some companies are considering migrating their mining operations to Brazil due to the situation.