Bitcoin Bill Vetoed In Paraguay: 'Too Much Electricity, Not Enough Job Creation'

Paraguay's so-called Bitcoin Bill, an attempt to regulate Bitcoin mining and crypto trading in the Latin American country, has been vetoed by President Mario Abdo Benitez.

The Senate approved the bill in July, but Abdo Benitez rejected the legislation "in full."

What Happened: An 11-page executive order stated: “OBJECTED IN FULL TO BILL NO. 6962/2022 "REGULATING THE MINING, MARKETING, INTERMEDIATION, EXCHANGE, TRANSFER, CUSTODY, AND ADMINISTRATION OF CRYPTO ASSETS OR INSTRUMENTS THAT ALLOW CONTROL OVER CRYPTO ASSETS."

There are two reasons for the rejection: energy consumption and lack of job creation. Bitcoin mining requires huge amounts of electricity, but Paraguay's energy should "focus on prioritizing efficient sectors and activities that generate economic, social, and environmental benefit," Abdo Benitez said.

Also, it "does not create as much labor as any other industrial sector," he added. Providing electricity to mining involves "direct and discriminating competition against manufacturing industries," and mining is a transitory business activity that has no long-term effects on the country's development.

The veto likely affects Canadian Bitcoin miner Bitfarms Ltd (NASDAQ: BITF), a prominent mining player in Paraguay.

See Also: Paraguay Data Center Market Investment Analysis Report 2022-2027 Featuring Investors.