Paraguay’s Senate has decided to reject the full veto power exercised by President Mario Abdo over the cryptocurrency bill proposed on September 2. The Senate defended the initiative, stating that it was in the country’s interest to pass the bill due to the effect of tracking the energy consumption of crypto miners and the revenue the mining tax would bring to the country.
Paraguay’s Senate Affirms Approval of Cryptocurrency Bill
The Paraguayan Senate is ready to fight the president on the passage of the recently approved cryptocurrency bill. President Mario Abdo fully vetoed the initiative earlier this month, but the Senate has rejected the action, reaffirming its support for sanctioning the bill in a new debate.
Senators argued that the bill has several decisions that would benefit the cryptocurrency industry, including states and crypto miners. Senator Enrique Salyn Buzarquis vowed to support the bill’s sanctions, saying that the state should formalize the collection of taxes on cryptocurrency mining activities taking place in Paraguay. Heexplained:
I am defending the bill because it is better to charge a formal, corresponding one for cryptocurrency business.
Senator Abel Gonzalez, also a senator, argued in favor of the sanction, saying that energy should be used to generate revenue for the country instead of wasting it. Senator Daniel Rocha also decided to support the bill again, explaining that cryptocurrency could contribute to the use of energy in new forms of employment.
All 33 Senators vetoed the President’s veto of the mentioned bill.
Background and Possible Scenarios
The cryptocurrency bill was vetoed outright in light of several environmental and operational concerns. The veto document anticipates that if the cryptocurrency mining industry continues to grow, it may have to import power sometime in the future. The veto document considers that cryptocurrency mining is “characterized by high consumption of electrical energy, intensive use of capital, and little use of labor.”
In addition, the electricity rates for mining operations proposed in the cryptocurrency bill have been criticized by the country’s electricity administration, with some officers saying they are inadequate.
Now, the cryptocurrency bill must be passed to the national vice chancellor to discuss whether to also veto the president’s veto. If this happens, the bill will eventually be sanctioned, even without presidential support. This issue is expected to be resolved before 2023.
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