Latin America Advisor
Financial Services Advisor
A Publication of The Dialogue
How Likely Is Paraguay to Restrict Bitcoin Mining?
Paraguay’s Congress is considering legislation that would tighten restrictions on the mining of Bitcoin in the country. Lawmakers who introduced the measure, which would completely ban mining of the cryptocurrency for six months, are saying that illegal cryptocurrency mining operations steal electricity and disrupt the country’s power supply. What are the most significant parts of the measure under consideration, and how likely is it to become law? How much does cryptocurrency need tighter regulations in Paraguay and elsewhere? How do Paraguayan lawmakers’ efforts to tighten restrictions on Bitcoin compare with regulatory actions in force and under consideration in other Latin American countries?
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Heather Ba, assistant professor at the Truman School of Government and Public Affairs at the University of Missouri: “Countries face a different set of incentives to ban cryptocurrency mining than to ban cryptocurrency usage. Most countries ban cryptocurrency usage to preserve control over international capital flows and domestic monetary policy or out of concerns about crypto’s use by illicit criminals or political opponents. Governments might be concerned about cryptocurrency mining if it is being done to fund political or criminal activities, but more likely a government like Paraguay is concerned about crypto mining because it is energy intensive and bad for the environment. The amount of energy the world uses to run electrical infrastructure that supports data storage or cloud computing has skyrocketed in the past decade. The information age is proving…”
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About the Financial Services Advisor
Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.
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Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org
Carl David Goette-Luciak
Reporter
Nili Blanck
Reporter