Published on juli 23, 2024, 12:28 am
Image source: Fox News
```json [ { "TLDR": "Capamad spokesperson Jimmy Kim expresses concerns over Paraguay's electricity price increase, fearing it could drive away 70% of legal crypto miners, potentially causing significant economic impact and job losses. Capamad urges the government to reconsider the decision to safeguard $1.5 billion in investments and protect legal mining operations." } ] ```
Capamad spokesperson Jimmy Kim has raised concerns about the electricity price increase set to come into effect on August 1, stating that it could potentially drive 70% of legal crypto miners out of business. The Chamber of Digital Asset Mining (Capamad) represents legal Paraguayan Bitcoin and altcoin miners and is advocating for a reconsideration of this decision by the authorities.
In a bid to protect the country’s economy from possible losses amounting to $1.5 billion, crypto miners in Paraguay are urging the government to review its plan to raise electricity prices for legal mining operations. The national electricity grid operator, Administración Nacional de Electricidad (ANDE), recently announced its intention to proceed with the price hike despite opposition from industry representatives like Jimmy Kim.
Notably, Capamad argues that the proposed price hikes will render legal crypto mining unsustainable in Paraguay and could lead to significant job losses, affecting both direct and indirect employment opportunities. Kim emphasizes that such a development would not only impact existing businesses but also jeopardize planned investments totaling over $1.5 billion in technology and infrastructure.
While recognizing the need to address issues related to illegal crypto mining activities disrupting the electricity supply, Capamad emphasizes the importance of distinguishing between lawful operators and illicit “farms.” With over 50 legitimate companies operating in compliance with regulations and contributing positively to the economy, Kim asserts that these firms have already injected more than $700 million in foreign direct investment (FDI), marking a substantial boon for Paraguay’s economic landscape.
Original article posted by Fox News
