The Paraguayan Senate has decided to reject the full veto imposed by President Mario Abdo on a proposed cryptocurrency bill on Sept. 2. The Senate defended the initiative, saying passing the bill would benefit the country because of its implications for tracking cryptocurrency energy consumption. The revenue that miners and mining tax will bring to the state.

Paraguayan Senate confirms approval of cryptocurrency bill

The Paraguayan Senate is ready to fight the president when it comes to passing the recently approved cryptocurrency bill. President Mario Abdo rejected the initiative outright earlier this month, but the Senate reiterated its support for ratifying the bill in new discussions, rejecting the move.

Senators believe there are several decisions in the bill that will benefit the nation and the cryptocurrency industry, including crypto miners. Senator Enrique Salyn Buzarquis has vowed to support sanctions against the bill, saying the state should formally tax cryptocurrency mining that occurs in Paraguay. He explained:

Cryptocurrency businesses are better off formalizing and charging for the corresponding content, so I defend this bill.

Another Senator, Abel Gonzalez, also supported the sanctions, noting that energy should be used to generate revenue for the country, not go to waste. Senator Daniel Roja also decided to support the bill again, explaining that it could help the use of energy in new forms of employment through cryptocurrencies.

All 33 senators rejected the president’s veto on the bill.

Background and possible scenarios

The cryptocurrency bill was rejected outright, considering several environmental and operational concerns. Veto predicts that the country may have to import electricity at some point in the future if the cryptocurrency mining industry continues to grow. The rejection document argues that cryptocurrency mining “is characterized by high electricity consumption, intensive use of capital, and low use of labor.”

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In addition, electricity tariffs for mining operations proposed in the cryptocurrency bill have also been criticized by the country’s power management authority, with some officials saying they are insufficient.

Now, the cryptocurrency bill will be brought to the National Deputy House of Representatives, which will have to discuss whether it also rejects the president’s veto. If that does happen, the bill will eventually be approved even without the president’s support. The issue is expected to be resolved by 2023.

What do you think of the evolution of Paraguay’s proposed cryptocurrency bill? Let us know in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist in Venezuela. He describes himself being late to the game, entering the crypto space when prices rose in December 2017. With a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency craze on a social level, he offers a different perspective on the success of cryptocurrencies and how it can help the unbanked and underserved.

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