Several companies are considering setting up their bitcoin mining operations in Paraguay. Last week, Future Fintech, a Chinese company, announced formal plans to build a bitcoin mining facility in the country, stating that they were determining the best location for the upcoming farm. In June, local media reported that eight Chinese economic groups were interested in visiting the country.
Paraguay Is Being Considered for Bitcoin Mining Potential
Paraguay, an often-overlooked South American country, has recently caught the attention of mining companies interested in establishing operations there. For these groups, Paraguay offers several advantages, including an abundance of unused hydroelectric power that could be put to use. Bitcoin mining has been labeled as a “dirty” industry, but with this much clean energy, companies could mine without concern for the environment.
Future Fintech, a Chinese company invited to Paraguay, has already announced plans to set up a bitcoin mining facility in the country. According to a press release issued last week, the company’s CEO, Shanchun Huang, will review the facts to determine the best way to make this a reality. According to Huang:
We intend to thoroughly evaluate this development opportunity in Paraguay. We will work with our local consultant to assess Paraguay’s hydroelectric power and clean energy resources, potential locations for a mining farm, and any preferential policy treatment we may receive in exchange for our capital investment.
The company also made a special mention of the government of Paraguay’s support for the cryptocurrency mining industry.
Many more could be on the way.
Many more companies may be secretly planning to relocate their operations to Paraguay, especially in light of China’s recent cryptocurrency crackdown. In July, Juanjo Bentez Rickmann, CEO of bitcoin mining company Digital Assets, stated that at least eight Chinese economic groups were interested in Paraguay, but he did not elaborate on the identities of these groups.
Furthermore, Rickmann stated that one of these groups was already in the country and planned to install 90,000 miners in the coming months. The 5,500 MW of unused power that Paraguay is said to produce could herald the beginning of a bitcoin mining era in the country.