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Author: Admin | 2025-04-28
To fully understand Paraguay’s vast energy potential to build a profitable Bitcoin mining infrastructure.Recent: Venezuela opposition’s Bitcoin reserve plan must overcome political turmoil firstIn 2022, Paraguay’s legislature approved a bill to regulate cryptocurrency mining to establish a clear legal framework for the industry. The bill required miners to register with government authorities and adhere to specific energy consumption standards, ensuring compliance while fostering the growth of crypto-related activities in the country.However, former President Mario Abdo Benítez vetoed the bill, citing concerns over energy consumption and minimal economic benefits. Some lawmakers urged the government to consider the benefits of selling the surplus energy to local crypto miners instead of exporting it to Argentina and Brazil. Despite friction from lawmakers, mining operations have continued to grow, albeit in a regulatory gray zone.Venezuela: Energy giant with stunted crypto adoptionVenezuela has faced severe economic crises, including hyperinflation and shortages of essential goods, and many citizens have turned to cryptocurrencies to protect their earnings from inflation.The country is rich in oil and natural gas, providing a cheap and abundant energy source for electricity generation, an important factor for Bitcoin mining’s proliferation.Anibal Garrido, CEO of crypto assets self-custody firm BTC Techno, told Cointelegraph that if Venezuela used its natural wealth correctly, it could bring “our nation into a cycle of financial profitability and operational sustainability” in the Bitcoin mining sector. “Venezuela shouldn’t only try to emulate Bhutan’s model, but to surpass it.”However, due to the neglected infrastructure, the country suffers frequent power outages and electricity shortages, making it difficult for miners to function. The government has banned crypto mining in Venezuela to protect its weak power grid, shutting down and seizing several mining facilities.Garrido believes Venezuela has failed to harness its energy potential to establish a national Bitcoin mining network “due to the lack of political will.” The 2024 Global Adoption Index from Chainalysis ranks Venezuela among the top 20 countries for crypto adoption. Venezuela once had the potential to emerge as a true crypto nation, with the widespread use of cryptocurrencies for daily peer-to-peer (P2P) payments and the government’s creation of Petro, a national cryptocurrency pegged to the country’s oil reserves.However, the Venezuelan opposition claimed Petro was a “null and void” project that was “tailor-made for corruption.” Eventually, the national Venezuelan cryptocurrency was shut down due to low adoption.Venezuela is currently in political turmoil, with accusations of vote rigging surrounding the 2024 presidential election. Both Venezuelans and international observers are calling for President Nicolás Maduro to release the voting records to clarify the election’s outcome.Should a new government take power, public institutions might revisit crypto adoption. Opposition leader María Corina Machado has proposed adding Bitcoin to Venezuela’s reserves, envisioning a new era under the leadership of Edmundo González.Garrido highlighted that if Venezuela renews its efforts to adopt cryptocurrency, it “must be nurtured by a solid education in both the technical and theoretical aspects of managing this emerging industry.” Without proper knowledge and understanding, sustainable growth in the sector would be difficult.El Salvador: A missed opportunity
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