Cryptomining has become one of the most important emerging industries in Paraguay, driven by the country’s abundant and affordable electric power. Companies in this sector, operating under legally established contracts, have made significant investments amounting to 900 million dollars, benefiting the Paraguayan state.
Cryptomining companies have invested approximately 537 million dollars in infrastructure and servers in Paraguay. These investments reflect the sector’s commitment to the country’s technological development and highlight Paraguay’s growing role in the global digital mining industry.
Moreover, these companies have significantly contributed to the state’s coffers through various taxes and fees. Recent data shows that contributions to the Department of Customs Taxes (DINT) in customs duties amount to 69 million dollars. This is in addition to an annual contribution to the National Electricity Administration (ANDE) of 223 million dollars for energy consumption, and an additional 20 million dollars in Value Added Tax (VAT) to DINT. Furthermore, a "security deposit" of 49 million dollars has been recorded for ANDE. Altogether, these contributions reach a total of 900 million dollars.
Economic and Social Impact
According to a statement from the Paraguayan Chamber of Digital Asset Mining, the sector has strengthened the country’s economy not only through direct investments but also by creating specialized jobs and generating fiscal revenues.
The Chamber also highlighted that cryptomining companies pay energy rates up to 50% higher than other industries, representing a significant source of income for ANDE.
The impact of these investments goes beyond the creation of 1,170 direct jobs, also generating multiple indirect jobs. This includes the hiring of local services for the construction and operation of facilities, benefiting sectors such as electrical conductor manufacturing, transformer production, and suppliers of materials for civil and metallurgical works, among others.
Future Opportunities
The growth of the cryptomining sector in Paraguay presents a unique opportunity to capitalize on the abundant electricity the country currently exports to other nations at low prices. The Chamber emphasizes that, with adequate support from the National Government, digital asset mining could inject over 1.5 million dollars annually into the Paraguayan economy, with an energy consumption of around 780 MW, equivalent to just over one of the ten turbines available at Itaipu Binacional.
This increase in energy demand could allow Paraguay to sell its surplus at more competitive prices, generating additional income that could be allocated to social programs, public infrastructure projects, and transportation improvements, benefiting the population as a whole.
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