The industry organization Capamad (Chamber of Digital Asset Mining) warned that this decision could completely destroy the industry. Spokesperson Jimmy Kim stated that this sharp increase in electricity prices would make the vast majority of legal crypto mining operations in Paraguay economically unsustainable. This situation could cause thousands of people to become unemployed and the industry’s $1.5 billion investment plans to fail.

Cryptocurrency mining is an extremely energy-intensive process. Therefore, low electricity costs are vital for the competitiveness of the sector. Paraguay stood out with this advantage and attracted a significant amount of foreign investment to the country. However, ANDE’s determination completely eliminates this advantage.

The potential collapse of the industry would negatively impact not only miners but also the Paraguayan economy. Crypto mining provides significant tax revenue to the country and creates employment for thousands of people. Bankruptcy of the sector will cause these revenues to be lost and unemployment to increase. In addition, the 1.5 billion dollar technology and infrastructure investments planned by the sector in the coming period will also fall through.

Industry representatives are calling on the government to reconsider this decision. It is stated that this sharp increase in electricity prices will harm the country’s economy and reduce its attractiveness to energy-intensive industries. Crypto mining carries significant potential for Paraguay’s economic growth and energy policies. Urgent measures need to be taken to prevent this potential from being wasted.

The reasons for ANDE’s decision have not been fully disclosed yet. However, industry representatives estimate that the company is having difficulty meeting the increasing electricity demand and has taken such a step in order to reduce its costs. However, it should not be ignored that this decision may cause greater economic problems in the long term.

The crypto mining industry had become a major powerhouse for the Paraguayan economy. The growth of the sector was also positively reflected in other sectors. For example, electrical equipment manufacturers, refrigeration systems, the construction industry, and many other areas were benefiting from the growth of crypto mining. The collapse of the sector will also negatively affect these sectors.

Additionally, the crypto mining industry was making a significant contribution to the country’s digital transformation. Expertise in the sector could also be transferred to other technological areas. This potential is in danger of being wasted with ANDE’s decision.

The future of the sector remains uncertain. If ANDE does not reverse its decision, it seems inevitable that the crypto mining ecosystem in Paraguay will suffer a major blow. This situation will negatively affect not only the miners but also the country’s economy. The government needs to find a solution to this issue immediately. Otherwise, Paraguay may have to struggle for many years to regain its lost leadership position in the field of crypto mining.