LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

December 17, 2025

Why Is Tether Backing Out of its Projects in Uruguay?

Cryptocurrency stablecoin Tether announced last month that it has suspended its mining operations in Uruguay, where it had planned to invest $500 million. // File Photo: Adobe Stock.

Q

A

Yohir Akerman, president of the Latin America region at Guidepost Solutions: “Tether’s abrupt suspension of its operations in Uruguay exposed the core vulnerability of these projects: When electricity costs spike and tariff negotiations stall, even a headline investment of $500 million can collapse overnight. Public reporting indicates that rising power prices and an unresolved dispute with state utility UTE forced the company to halt operations and lay off staff, despite earlier plans for large-scale data infrastructure and renewable energy developments. The cause is unmistakable: Energy economics, not market sentiment, drove the suspension. Uruguay’s electricity system is clean and reliable, but industrial power prices remain higher than in regional competitors, particularly Paraguay, where excess hydropower keeps costs among the lowest…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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