Cryptocurrency miners in Paraguay have called on the government to reconsider an upcoming increase in electricity prices, as the departure of miners from the country could damage the economy and lead to losses of up to $1.5 billion.

Jimmy Kim, a representative of the Chamber of Digital Assets Mining (Capamad), which represents the interests of legal Paraguayan miners, expressed disappointment with the recent decision by the National Electricity Authority of Paraguay (ANDE) to increase electricity rates for miners. On July 19, ANDE announced that a 16% price increase for cryptocurrency miners would go into effect on August 1.

“We are incredibly disappointed with ANDE’s actions. The utility company already raised electricity prices by 54% in 2022, when miners started signing five-year agreements with ANDE,” Kim said.

Capamad fears that due to the increase in electricity tariffs, up to 70% of legally operating mining companies could cease their operations in the country. This would entail the loss of several thousand jobs. In addition, it would negatively affect the planned investment in the latest technology and mining infrastructure worth more than $1.5 billion.

Kim added that more than 50 mining companies operate legally in Paraguay and can make a significant contribution to the economy. According to him, these companies have already brought the country more than $700 million, which is the largest amount of foreign direct investment the country has ever received. Therefore, Capamad called on ANDE to reconsider the increase in prices for miners in order to protect a vital source of income for the Paraguayan economy.

Recall that local law enforcement agencies previously accused several ANDE employees of creating illegal mining farms. ANDE assured that it is assisting the police in investigating the case.