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Paraguay Fights Illegal Miners and More
BeInCrypto, Latam Crypto Roundup Complete, features the most important news and trends from Latin America. With reporters in Brazil, Mexico, Argentina and elsewhere, we cover the latest updates and insights from the region’s crypto scene.
This week’s roundup includes stories about Paraguay’s stepped-up efforts against illegal Bitcoin miners, Mexico’s growing cryptocurrency user base, and more.
Paraguay Raises Electricity Rates for Bitcoin Miners
Paraguay’s National Electricity Administration (ANDE) has increased electricity rates for cryptocurrencies mining companies from 9 to 16 percent. This measure aims to curb losses from illegal mining, which are estimated to cost the country up to 14 billion guaraníes (over $185,000).
On June 26, ANDE issued Resolution 49238updating electricity rates. Hugo Fernández, commercial director of ANDE, informed the newspaper Última Hora of the intensified efforts against illegality cryptocurrency miningHe revealed that 72,823 KVA (kilovolt-ampere) were intercepted this year. Most of the energy thefts affect the electrical system.
“The intervention represented a monthly loss of G. 14,720,458,825 for the entity, in terms of unregistered active energy, which added to the costs of the intervention and the fine, must be paid by the person responsible for the theft of electricity. This fact damages the correct functioning of the electrical system”, Fernández explained.
To know more: Is Cryptocurrency Mining Profitable in 2024?
Electricity Rate Adjustments for Bitcoin Miners in Paraguay. Source: AND AND
In early June, National Representative María Constancia Benítez de Benítez presented a bill entitled “Regulating cryptomining in the Republic of Paraguay,” which aims to regulate Bitcoin mining. He recognized that mining represents an opportunity for the economic development of the country.
BeInCrypto CEO Alena Afanaseva to Speak at Blockchain Rio 2024
The highly anticipated Blockchain Rio 2024 will be held on July 24-25 at EXPOMAG in Rio de Janeiro. This year’s event will feature over 300 experts in the new economy, including BeInCrypto CEO Alena Afanaseva. She will discuss global trends in the new economy and the educational role of media.
Other confirmed attendees include Ariel Scaliter, co-founder and CTO of Agrotoken, and Daniela Barbosa, director of the Hyperledger Foundation. João Aragão Pereira, a technology and innovation specialist at Microsoft, and pro-crypto senator Carlos Portinho will also be participating. They will showcase their expertise in a variety of fields, from digital finance to energy and agriculture.
To know more: Major Cryptocurrency Events in 2024
Agrotoken, Microsoft and Hyperledger have joined the Drex pilot platform consortium to highlight the importance of advanced blockchain applications. Blockchain Rio 2024 will also feature workshops, hackathons, knowledge lanes, networking areas, the Rio Digital Arts gallery and immersive experiences. The business fair will provide a platform for companies to showcase their solutions, creating new connections and potential collaborations between attendees.
Bolivian President Lifts Cryptocurrency Ban Amid Dollar Shortage
In response to an economic crisis marked by shortages of dollars and fuel, Bolivia lifts ban on cryptocurrency use as a means of payment. President Luis Arce announced the move to mitigate the impact of declining foreign exchange reserves caused by the decline in gas exports, the country’s main source of income until 2021. Arce believes that this move could significantly benefit the Bolivian economy by attracting foreign capital and modernizing its financial system.
From a macroeconomic perspective, allowing cryptocurrencies could attract foreign investment, as these digital assets enable fast and secure global transactions. This potential for seamless international trade could encourage both individual and corporate investors to diversify their assets in emerging markets like Bolivia, bypassing traditional currency restrictions.
Bolivia, which receives large amounts of remittances from its citizens abroad, stands to gain from this policy change. Cryptocurrencies provide a faster and cheaper way to transfer money, reducing transaction costs and increasing the inflow of dollars into the country.
To know more: Cryptocurrency Regulation: What Are the Pros and Cons?
THE cryptocurrency adoption It could also boost e-commerce by allowing local companies to sell products and services internationally without traditional banking barriers. This expansion would help diversify Bolivia’s sources of revenue beyond gas exports.
Overall, Bolivia’s decision to adopt cryptocurrencies could mark a shift in addressing the country’s economic challenges, offering new opportunities for investment, trade, and financial stability.
3.1 Million Mexicans Now Own Cryptocurrency, Report Reveals
A recent one relationship from Sherlock Communications reveals that cryptocurrency adoption is on the rise in Mexico, with over 3.1 million holders, or 2.5% of the population. The consultancy previously identified Brazil and Argentina as regional leaders.
The growth potential for cryptocurrency adoption in Mexico is significant, partly due to the $63 billion remittance market with the United States. A single exchange, Bitso, processed $4.3 billion last year.
“Regulators and authorities have remained silent on the tax status of cryptocurrencies and, so far, no tax legislation in Mexico addresses the issue. Some interpretations apply tax provisions and make applicable income tax rates of 30% to 35%, 16% VAT on any transfer within the country (but 0% if the buyer is outside of Mexico) and 10% capital gains,” Sherlock Communications said.
To know more: Who owns the most Bitcoin in 2024?
Additionally, the report found that some companies have played a key role in increasing cryptocurrency adoption in Mexico. Among them, the following stand out: Bitso, Volabit, Monetary baseRipple, Banco Azteca, Banxico, Telefónica, Helium, Etherfuse, the investment firms Exponent Capital, Lvna Capital and GBM, ConsensoSys Academy and BIVA.
Sherlock Communications argues that there are factors pushing the use of cryptocurrencies in Mexico, such as the central bank’s digital currency (CBDC) operating in the country, 40% of the country’s companies are trying to use blockchain technology, the Fintech law, and even the cryptocurrency sympathy of legislators in Mexico.
“Blockchain has an excellent reputation in Latin America. Latin Americans believe the technology has positive impacts in areas beyond the corporate and financial sectors. In the region, 61 percent of respondents in this sample agree that blockchain technology can transform the way governments keep records,” the report reads.
As Latin America’s crypto scene grows, these stories highlight the region’s growing influence in the global market. From Bolivia’s recent efforts to Mexico’s growing adoption of digital assets, Latin America is positioning itself as a key player in the tech world. Stay tuned for more updates and insights in next week’s roundup.
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