On Wednesday, 33 senators in Paraguay's legislature rejected a presidential veto issued by President Mario Abdo Benitez, who opposes the country's first Bitcoin mining legislation on the grounds that it is energy-intensive and likely to jeopardize the South American country's economic future.
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The legislation establishing a regulatory framework for Bitcoin mining was approved this summer by Paraguay's legislature, but President Benitez objected to the high energy consumption and low employment benefits linked to Bitcoin mining and consequently vetoed the landmark bill.
Now, the bill may be the subject of debate between the presidency and legislature, as senators like Enrique Salyn Buzarquis argue it is “better to formalize” crypto in the Latin American country to reap the tax benefits, and congressman Daniel Rojas claims the emerging industry could yield “new forms of employment."
Lawmakers are hoping to capitalize on Paraguay's abundant, cheap electricity, which would allow the country to become a haven for Bitcoin mining. Foreign companies are already taking notice, like Canada's Bitcoin farming company Bitfarms already eyeing a move.
Given the disagreement, the bill will advance to Paraguay’s Chamber of Deputies where it will be debated before a decision is made.