The Paraguayan Senate has decided to reject the total veto that President Mario Abdo exercised on a cryptocurrency bill on September 2. The Senate has defended the initiative, saying passing the bill would benefit the country because of its effect on tracking cryptocurrency energy consumption. miners and the revenue that mining taxes would bring to the state.
Paraguayan Senate Confirms Approval of Cryptocurrency Bill
The Paraguayan Senate is ready to fight the president over the passage of the recently approved cryptocurrency bill. President Mario Abdo exercised full veto action on the initiative earlier this month, but the Senate reaffirmed its support for the bill’s assent in further discussion, rejecting the action.
The senators argued that the bill contains several rulings that would benefit the state and the cryptocurrency industry, including crypto miners. Senator Enrique Salyn Buzarquis pledged to support the bill’s assent, saying the state should formalize the collection of taxes on cryptocurrency mining activities that take place in Paraguay. He explained:
It’s better for the cryptocurrency business to formalize and charge accordingly, so I’m defending the bill.
Abel Gonzalez, another senator, also argued in favor of this sanction, saying the energy should be used to generate revenue for the state, instead of being wasted. Senator Daniel Roja has also decided to support this bill again, explaining that it could contribute to the use of energy in new forms of employment thanks to cryptocurrency.
The 33 senators rejected the presidential veto on the mentioned bill.
Context and possible scenarios
The cryptocurrency bill was completely vetoed, taking into account several environmental and operational concerns. The veto predicts that if the cryptocurrency mining industry continues to grow, the country may need to import electricity at some point in the future. The rejection document considers cryptocurrency mining to be “characterized by its high consumption of electric power, with intensive use of capital and little labor.”
In addition, electricity charges proposed in the proposed cryptocurrency bill for mining operations have come under criticism from the country’s electricity administration, with some officials saying they were inadequate.
Now, the cryptocurrency bill will be sent to the National Chamber of Deputies, which will have to discuss whether it also rejects the presidential veto. If that happens, the bill will eventually be sanctioned, even without presidential support. The case is expected to be resolved before 2023.
What do you think of the evolution of the cryptocurrency bill in Paraguay? Tell us in the comments section below.
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