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    President of Paraguay Mario Abdo Vetoes Cryptocurrency Bill


     


    The President of Paraguay, Mario Abdo has issued an executive
    veto on a recently approved cryptocurrency bill. Abdo’s veto decree
    states cryptocurrency mining is an “energy-intensive” and a
    low-value-added activity. The bill will now be returned to Congress to
    be approved again or to be rejected entirely.

     

    President of Paraguay Considers Cryptocurrency Mining an Energy Intensive Activity



    The President of Paraguay, Mario Abdo, has exerted
    an executive veto on the recently approved cryptocurrency bill, after
    more than a year of discussions in the Paraguayan Congress. The project,
    which was introduced
    in July 2021, aims to clarify the rules by which cryptocurrency mining
    operators and other virtual asset service providers must abide on
    Paraguayan soil.



    The proposed bill established that cryptocurrency miners should pay a
    power fee 15% higher than what is paid by other similar industries.
    However, Adbo’s veto order establishes that this activity is
    “characterized by its high consumption of electrical energy, with
    intensive use of capital and little use of labor.” The executive order
    presents a bleak picture of the activity in Paraguay, predicting that if
    there is significant growth in this industry, the country might be
    pushed to import energy at some time in the future.



    This action might slow the growth of the cryptocurrency and bitcoin
    mining industry in the country. Some companies had already been examining a possible entrance into the country since the Chinese mining veto that occurred last year.





    Reasons Behind the Veto



    The veto answers some concerns presented by the national power
    administration of the country in August. At that time, it stopped
    supplying power to some miners due to the significant losses it was
    facing. This was the consequence of the power theft and power metering
    irregularities perpetrated by some mining companies. Officers of the
    institution stated
    it had registered losses of more than $400,000 monthly, declaring their
    opposition to the cost structure presented in the now vetoed bill, and
    their support for a partial veto move on it.



    The future of the cryptocurrency bill is now uncertain, as it will
    need to be sent to Congress for the representatives to accept this move
    or try to pass the crypto bill again. This would not be the first time
    that a president exerts his veto rights to stop a cryptocurrency-related
    bill in Latin America, as president Laurentino Cortizo vetoed a similar initiative in Panam last June, citing cryptocurrency-related money-laundering concerns as the cause.

    source link :  https://news.bitcoin.com/president-of-paraguay-mario-abdo-vetoes-cryptocurrency-bill/


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