A clear regulatory framework is essential to establish a BTC reservation.
In recent years, Paraguay has experienced an increase in illegal Bitcoin mining.
Paraguay, a country with abundant energy resources, has the opportunity to consolidate as an even more relevant actor in the Bitcoin (BTC) sector and cryptocurrencies, by creating a strategic BTC reserve.
Taking advantage of its hydroelectric energy and the opportunities offered by Bitcoin mining, the South American nation could create a sustainable source of digital wealth, mainly by the dams of Itaipu and Yacyretá.
These facilities produce an energy surplus that is not completely usedwhich represents an opportunity that is already exploited by companies that have been established in the country to carry out mining activities. Some of these companies are Hive Digital Technologies and Bitfarms.
In this way, local specialists have indicated to the press that the State can also take advantage of the energy surplus to generate cryptoactive, which could accumulate as a strategic reserve. This would diversify the reserves of the country and decrease its dependence on foreign currencies.
Bruno Vacotti, founding partner of the Paraguayan Chamber of Digital Assets Mining, considers that Machines seized to illegal cryptocurrency mining could be usedsince “all that represents a great computing power.”
“If we have available energy and seized machines that are accumulating dust, it is a nonsense not to use them to generate value, and that this value is for all Paraguayans,” explained Vacotti
As cryptootics has reported, in recent years, Paraguay has registered an increase in illegal mining of BTCwith operations that have resulted in the seizure of thousands of ASIC machines (integrated circuits of specific application).
Instead of destroying or storing these seized equipment, the State could put them to operate on legal mining farms, managed directly by public entities or by public-private alliances. This would allow BTC to generate for national coffers using existing infrastructure, without incurring additional acquisition costs.
However, for this initiative to prosper, it would be essential to establish a clear regulatory framework that encourages investment. It should be remembered that in 2021 a bill was presented to regulate mining and trade in cryptoactive, but it was vetoed In 2022.
A well -designed regulatory environment could attract both local miners and international companies, incorporating tax incentives, clear rules about the use of energy, the guarantee of public audits and effective measures against money laundering. All this would contribute to an eventual Bitcoin reserve being managed transparently.
Bitcoin as a reserve: international examples
The truth is that Paraguay has examples in which it can be inspired. Bután, a small country of Himalaya, has managed to accumulate a reserve of more than 12,000 BTC – valued at approximately USD 1.3 billion -, taking advantage of its own hydroelectric energy for mining. In fact, the small nation has 40% of its GDP in Bitcoin.
For its part, El Salvador has adopted a different approach, accumulating 6,230 BTC through periodic purchases. His acquisition strategy began in September 2021, when he became the first country in the world to adopt BTC as legal tender.
Since November 2022, the country governed by Nayib Bukele redoubled its bet and adopted a strategy of acquiring 1 bitcoin per day, a practice that has since maintained some exceptions.
The idea of having reserves in Bitcoin has not been limited to developing countries. In the United States, the concept is also gaining ground.
At the federal level, the authorities have accumulated cryptocurrencies mainly through seizures related to illegal activities. In addition, in March, President Donald Trump signed an executive order authorizing the creation of a digital asset reserve, anchored with the seized.
In the midst of this scenario, several US jurisdictions have adopted more proactive positions. States like New Hampshire and Arizona have approved favorable laws to form Bitcoin reservations.
New Hampshire stood out when promulgated in May Law HB 302, becoming the country’s first territory to establish a BTC reserve fund. This authorizes the State Treasurer to invest up to 5% of public funds and other funds approved in precious and digital active metals with a market capitalization greater than 500 billion, a threshold that currently only reaches Bitcoin.
Arizona continued with the approval of Law HB 2749 in May, establishing a Bitcoin reserve financed with unlawled digital assets, such as Airdrops and Staking Rewards. This is despite the fact that, this month, the governor vetoed the project to treasure those seized of illegal cases.
