Eight huge Chinese mining companies are in talks with the Paraguayan government and local businesses to relocate their mining resources to the country. This sudden interest towards the South American nation is not that sudden as Chinese miners are suffering from the recent bans of cryptocurrency mining in China.
In total, over 500 thousand machines may soon occupy data centers in Paraguay where renewable sources of energy are the new norm.
On the other hand, there is a distinct interest in attracting foreign mining business in the country as outlined by the CEO of Digital Assets S.A. based in Paraguay Juanio Benitez Rickmann who was instrumental in the recent talks with Chinese miners. He said that an unnamed company from China recently contacted him to discuss potential partnership.
What’s interesting in this whole ordeal is that Paraguay, unlike some other industrial countries, can afford sparing over 5.5 GW of energy generated by various facilities focused on renewables which is like free money for miners. Currently, 100% of the nation’s electricity demands are covered by hydroelectric power with one of the largest dams in the world supporting a facility generating 8.5GW.
While the news is definitely a positive thing for the whole crypto community, many people still criticize the government and there are local political groups who are against promoting Bitcoin and other cryptocurrencies in Paraguay.