The Paraguayan Senate is prepared to fight the president regarding the newly enacted cryptocurrency law. President Mario Abdo vetoed the measure earlier in the month. However, the Senate has confirmed its backing for the bill’s penalty in a fresh debate, rejecting the decision.
Senators stated that the law contains various choices that would help the state and the cryptocurrency sector, particularly crypto miners. Senator Enrique Salyn Buzarquis pledged his support for the bill’s passage, noting that the state should legitimize collecting taxes on bitcoin mining operations in Paraguay.
Another senator, Abel Gonzalez, argued in support of the punishment, noting that the energy must be utilized to produce revenue for the state rather than being squandered.
Senator Daniel Roja has also opted to reintroduce this measure, stating that it may contribute to energy usage in new types of employment through cryptocurrencies. All 33 senators defeated the presidential veto on the referenced measure.
Background Information and Potential Scenarios
The Bitcoin measure was ultimately vetoed, citing many environmental and operational problems. According to the veto, if the bitcoin mining sector continues to develop, the government may need to import electricity at some point in the future.
According to the rejection document, bitcoin mining is “marked by high electrical energy consumption, intense use of capital, and low use of labour.” Furthermore, the power costs suggested in the cryptocurrency law for mining operations were criticised by the country’s power authority, with some officials claiming they are insufficient.
The cryptocurrency measure will now be sent to the National Deputy chamber, which must also decide whether to reject the presidential veto. If this occurs, the law will eventually be approved, even if the president does not favour it. The problem is predicted to be rectified by 2023.