Jimmy Kim, a representative of the Chamber for the Extraction of Digital Assets (Capamad), representing the interests of legal Paraguayan miners, expressed disappointment with the recent decision of the National Electricity Authority of Paraguay (ANDE) to raise electricity tariffs for miners. On July 19, ANDE announced that a 16% price increase for cryptocurrency miners would take effect on August 1.
"We are incredibly disappointed with ANDE's actions. Energy companies have already increased electricity charges by 54% in 2022, when miners began signing five—year agreements with ANDE," Kim protested.
Capamad fears that due to the increase in electricity tariffs, up to 70% of legally operating mining companies may cease their activities in the country. This is fraught with the loss of several thousand jobs. In addition, this will have a bad impact on planned investments in the latest technologies and mining infrastructure worth more than $ 1.5 billion.
Kim added that more than 50 mining companies operate legally in Paraguay and can make a significant contribution to the development of the economy. According to him, these companies have already brought the country more than $700 million, which was the largest volume of foreign direct investment that the country has ever received. Therefore, Capamad called on ANDE to reconsider price increases for miners in order to protect a vital source of income for the Paraguayan economy.
Earlier, local law enforcement agencies accused several ANDE employees of creating illegal mining farms. ANDE assured that it is helping the police in the investigation of the case.