To the gold mines that exist in the department of Guairá are added those of crypto waves, “bitcoin”, as disseminated by the deputy Carlos Rezala, from the Hagamos party, who visited a mine. From the private sector, it was learned that the BCP formed a commission on the subject, but apparently, it does not generate much official interest due to its low generation of employment and its high use of electricity.
Deputy Carlos Rezala reported that he visited one of the bitcoin miners in the Guairá department last Friday and that he also met with authorities from the company Clyfsa (Compañía de Luz y Fuerza SA). “We were in the cultured and walled city of Villarrica, visiting one of the bitcoin mining companies in our country. We shared and learned a lot, ”Rezala posted on her Facebook page.
When consulted in this regard, he explained that bitcoin mining is a great economic opportunity to generate wealth in Paraguay, in the sense of making the use of electricity more efficient, taking advantage of the hours when citizens or other industries do not. they use it.
“To promote this item, we need two things; one, create an electricity tariff that encourages the use of unused energy; two, create the technical conditions to be able to sell that surplus energy that no conventional industry could consume ”, proposed the parliamentarian.
He stressed that Paraguay is a country blessed with abundant clean and cheap energy and as a young man he no longer believes only in an economy based on agriculture and livestock. “We are the generation of technology and advancement,” he asserted.
The parliamentarian commented that during his visit to Villarrica he was really surprised by how the private company Clyfsa has managed to use its power hiring in an optimal way.
He explained that Villarrica consumes a power of 27 MW during consumption peaks. Clyfsa contracts that 27MW power to be able to supply the city, but that consumption only occurs for about 4 hours during the afternoon, what is known as peak load times, and only during summers. So the firm has a lot of power contracted throughout the night, all morning, and practically the entire siesta, a period in which the city and conventional users do not consume.
“In order not to waste those available but unused energy blocks, the Clyfsa company sells them to the bitcoin miners, in such a way as to be able to optimize their power contract to the maximum. This is a highly sophisticated form of operation that Hydro Quebec uses in Canada, with cryptocurrency miners, precisely to be able to optimize its energy sales ”, he indicated.
He added that Clyfsa not only sells that surplus but also controls in real-time when the mining companies can consume or stop receiving energy, depending on the city’s consumption.
“I was also with the CEO of the POW company Mike Cohen, from Canada who is one of the leaders of the cryptocurrency industry in that country and he told me that he was also surprised by the level of sophistication in the optimal management of Clyfsa”, referred.
Rezala indicated that the system applied in Villarrica is more sophisticated than the one used by Hydro Quebec in Canada and that this solution can be applied at the national level, in such a way that the power blocks that were contracted by ANDE, from the binationals, can be used optimally by selling energy at times that nobody uses, at night and during the early morning.
“These unused power blocks can represent millions of dollars in energy sales for ANDE. Today, in the world it is recognized that cryptocurrency miners are the best allies of electricity companies, especially in Canada, the United States, and in European countries, where they operate optimally and electricity companies are allowed to have great earnings, giving predictability to make investments in the generation and transmission of electric power ”, he said.
The deputy also pointed out that he had contacted the president of ANDE, engineer Félix Sosa, from whom he requested a meeting with his technical team, to see the possibility of selling excess power not used by ANDE, during low consumption hours…
Bitcoin commission on BCP?
On the other hand, the director of the Paraguayan Foundation, Martín Burt, announced last Tuesday, at a press conference, that the Central Bank of Paraguay formed a commission to analyze the bitcoin issue; however, we were unable to obtain the version from the parent bank.
MIC, no information
On the subject, we have consulted with the Vice Minister of Commerce, Pedro Mancuello, who pointed out that he has no information or data on investment intentions in bitcoin. “Some time ago we had a meeting on the bitcoin issue with the president of the Central Bank of Paraguay and several ministers of the Executive Power, where the conclusion was that this type of investment is not very convenient for the country, since it is intensive in the consumption of electricity and does not generate employment, “he said. However, he said that he personally believes that an effort should be made to regulate the conditions that must be required for this type of investment. He clarified that his opinion is not shared by the majority of the Economic Team.
The boom in the east
Regarding cryptocurrency mining, it should be noted that they are also booming in the Alto Paraná department. It involves hundreds or thousands of ultra-powerful processors, which work practically 24 hours a day to carry out transactions of the virtual currency or decentralized cryptocurrency. These processors must perform millions of calculations and algorithmic processes that after a certain amount of processes and results obtained, a cryptocurrency is generated.
Recall that in several interventions to the Alto Paraná Regional Agency of ANDE, 16 clients who are engaged in bitcoin mining were verified, of which four were intervened for irregularities, and fraud was detected for G. 8,717 million.
Regarding bitcoin, during a recent international forum on the rise of cryptocurrencies and its trend, in April this year, the vice president of products and innovation of the global company, Mastercard, Walter Pimienta, said that due to its constant fluctuation in the market, digital currencies or cryptocurrencies, should be considered as an investment option and not as a means of payments.
He emphasized that cryptocurrencies are gaining ground in the market, so it is convenient not to neglect the regulatory plans in each country and consumer protection.
Current bitcoin price
Bitcoin (BTC), the digital currency that has its followers and critics, was created in 2009. Although it took a few years to appreciate in the market, its price is highly variable, for example on March 13 of this year it was in the US. $ 60,364, that is, G. 399,790,772 for each BTC. However, according to the site https://coin360.com today it is at the US $ 35,685.31 for each BTC, that is, about G. 235,523,046 at the exchange rate of the dollar of G. 6,600.
The cryptocurrency is a consensual network that allows a new payment system, driven by its users, and its main advantage is that it can be used without intermediaries. As for disadvantages, volatility is mentioned and that by not having records, it is used in drug trafficking, illegal sale of weapons, and other criminal activities.