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Bitcoin clandestine mining in Paraguay increases electricity consumption



Key facts:
  • Paraguay’s electricity authority wants to combat clandestine connections with inspections.

  • Paraguay is one of the Latin American countries with the highest Bitcoin mining activity.


Paraguay’s National Electricity Administration (ANDE) has reported that in the eastern part of the country, more specifically in the department of Alto Paraná, there is a boom in Bitcoin mining companies that “could jeopardize” the stability of electricity.

According to engineer Miguel Ángel Báez, technical manager of ANDE, that Paraguayan region is experiencing a growing consumption of electricity by Bitcoin minersWho often are connected to the network, but in a clandestine way. To avoid paying for the service.

The specialist said efforts have been made to combat clandestine connections with operations and inspections in Ciudad del Este. “But while they disconnect one, they connect two others,” he explained.

Quoted in the media Color ABC, Báez specified that the miners of cryptocurrencies Are mining large amounts of energy and have spread “considerably” throughout the Alto Paraná department.

The engineer notes that a single mining company could absorb “all the power” of a generator for an apartment complex.

“We see cryptocurrencies being installed here in Ciudad del Este because the demand at our stations has increased significantly,” Baez said.

“Because of the type of consumption, i.e., they consume 24 hours a day the same amount of energy, we found out that these are cryptocurrencies and we are attacking them because they cause us big losses,” he added.

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If Báez’s allegations are true, Bitcoin miners in Paraguay would be evading tariffs that ANDE has established in order to continue operating. The paper points out that the cost of mining cryptocurrencies varies depending on the voltage used and was recently reported An increase in the budget of up to 58%, depending on the case.

Paraguay is a niche for Bitcoin mining.

As reviewed by CryptoNews, Paraguay is one of the most active countries in Latin America. from Mining of Bitcoin and other cryptocurrencies. In fact, this nation accounts for 0.15 percent of the global hash rate of the Bitcoin networkaccording to the University of Cambridge.

Mining in this country is mainly driven by hydropower. This is because the country is rich in rivers and tributaries that generate electricity.

Bitcoin mining in Paraguay has boomed in recent years and has reached the point that major companies in the industry have established themselves in the it was the case of Braiins.

All of this led to the drafting of a law at the legislative level that sought to provide a legal framework for mining and the cryptocurrency ecosystem in general.

However, starting with the government of Mario Abdo Benítez he vetoed the legislationarguing that mining “is not important” and does not generate jobs. ANDE then follows the Executive’s lead. It does so with a position adverse to the mining industry, which, in spite of everything, continues to expand on Guarani land.

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