Paraguayan Senate Supports Selling Power to Crypto Mining Companies, Criticizes

[sirty143]

Paraguayan Senate Supports Selling Power to Crypto Mining Companies, Criticizes Subpar Energy Agreements With Brazil

The Paraguayan Senate has approved a resolution supporting selling the country’s energy surplus to crypto mining companies, given the price and guarantees that these institutions offer. The declaration criticizes the subpar agreements that sell energy to Brazil... See more for yourself here.

Your opinion is greatly appreciated.

[Rruchi man]

Paraguayan Senate Supports Selling Power to Crypto Mining Companies, Criticizes Subpar Energy Agreements With Brazil

The Paraguayan Senate has approved a resolution supporting selling the country’s energy surplus to crypto mining companies, given the price and guarantees that these institutions offer. The declaration criticizes the subpar agreements that sell energy to Brazil... See more for yourself here.

Your opinion is greatly appreciated.

Brazil may consider renegotiation, or maybe looking to another supplier who could still supply electricity to them at the same rate, or even better now increase their attention to become energy self sufficient.
 The Paraguayan senate are certainly after increasing profits, and they are willing to get it from elsewhere (crypto mining company) if the Brazilian government choose not renegotiate.

[TomPluz]

This is a good move on the part of the Paraguayan Senate as the country should look for its own economic interest and must go for something that can give the country and power providers more leeway for possible profits. Why would power be sold to another country for a lower rate when there is a good, lucrative alternative, the crypto mining operators? As power is always the main contention when it comes to crypto mining, I am happy to see Paraguay is now very much open to this business and I know that the country is in the right direction as this can open more opportunities for its people not just with these mining companies but also that possibility of opening the country for other crypto-related fintech companies to also come in and do business with the country as its base in the North America market.

[robelneo]

I think they did the right thing Paragua is not a super rich country they have the right to sell their power to the best possible buyer in this case mining companies which offer 25% more, 25% is very huge with that 25% more they can sustain sectors that needs funding.
If they prefer the offer from Brazil they will get a lot of criticism, it's their interest that should matter.

[Stompix]

Why would power be sold to another country for a lower rate when there is a good, lucrative alternative, the crypto mining operators?

Because it was the agreement when the Itaipu dam, which sits on the border between Paraguay and Brazil was constructed.?
Because both Brazil and Paraguay own that dam?
Also, because Brazil is Paraguay's largest trade partner, what happens after you piss them off and if your bet on mining goes south?
You have one angry neighbor, a fucked up trade balance, and electricity you can't sell to anyone anymore!
Is it worth the gamble for a country 30 times smaller than Brazil?

[Faisal2202]

IMO Paraguayan made a good decision, I mean if they have not made a long-term contract with Brazil to provide them electricity at such a rate, then they have no other fear of canceling the deal anytime. But if the agreement is long term then that's an immoral thing as contracts should be considered at all times that reflect the sovereignty of a country. But if no long-term contract then it's the best decision. Because they are already making deals with 20 companies which means there is no risk.

While profit is waiting for the government, then why would they give all that 2,000 MWh energy to Brazil, With this competition in the market, Brazil might suffer some energy crisis, although I don't have great knowledge of how much 2,000 MWh energy is. Well, Brazil has to give them a better price now.

[yhiaali3]

Because it was the agreement when the Itaipu dam, which sits on the border between Paraguay and Brazil was constructed.?
Because both Brazil and Paraguay own that dam?
Also, because Brazil is Paraguay's largest trade partner, what happens after you piss them off and if your bet on mining goes south?
You have one angry neighbor, a fucked up trade balance, and electricity you can't sell to anyone anymore!
Is it worth the gamble for a country 30 times smaller than Brazil?

Of course, it is not worth it, but if Brazil and Paraguay own this dam, which is used to generate energy, there must be international agreements that determine each country’s shares of energy, and it is certain that Paraguay will not violate international law in selling Brazil’s dues to other parties, such as mining companies or others.

As I read in the article, the Paraguayan Senate approved a resolution supporting the sale of the country’s surplus energy to cryptocurrency mining companies. According to my understanding, only Paraguay’s surplus energy will be sold, and Brazil’s share will not be affected, Although the announcement criticized substandard agreements that sell energy to Brazil for 25% of the fees collected

[Zed0X]

Brazil pays $10 while Miners would pay $40, that's a no brainer if we're talking strictly about making profits from sale of energy surplus. I guess it is the better move after the call to suspend crypto mining (as mentioned in the article) due to losses caused by illegal miners..