In it episode twenty-one of Separating Money and StateIván Gómez spoke with Bruno Vaccotti, director of the Paraguayan Chamber of FinTech, founding partner of the Digital Asset Mining Chamber and organizer of Acelerando Bitcoin. Vaccotti presented an updated overview of Paraguay as one of the world’s most relevant players in Bitcoin: the country occupies fourth place globally in hashrate, with almost 1 GW operational and the capacity to scale to 3 GW in less than 18 months thanks to Itaipu’s hydroelectric surplus.
He highlighted that mining has injected more than 1.5 billion dollars in investments in four years, generates quality jobs (1,400 direct positions with salaries three times the minimum), energizes the local economy and acts as a stabilizer of the electrical grid by allowing quick disconnections during demand peaks. Furthermore, he pointed out the enormous hybrid potential with artificial intelligence: using only half of the current hash rate, Paraguay could become the second country with the greatest AI processing capacity in the world.
The most relevant:
- Miners pay up to $56 per MWh, while Paraguay sells energy to Brazil for less than $20 per MWh.
- Mining acts as a grid stabilizer: it can disconnect 80 MW or more in less than 10 seconds during demand peaks.
- Using only half of the current hash rate would make Paraguay the second country with the highest AI processing capacity in the world.
- The recent tax resolution generated communication and reputational damage, although it is inapplicable in many aspects.
- Last year, 42% of electro-intensive contracts were terminated after the rate increase.
- Paraguay received 77,000 applications for permanent residence last year, a record number for a country of 7 million inhabitants.
- Despite the relative historical stability of the guaraní, real inflation is already around 15-20% annually and Bitcoin is becoming attractive as a store of value.
- The state electricity company (ANDE) reduced blackouts by more than 80% in the last five years.
- Bitcoin mining is more network-friendly than AI, because it can be shut down instantly without affecting critical services.
- Work is underway on a state mining pilot with seized machines so that ANDE can reinvest in the electrical grid.
- The government maintains open dialogue tables with the sector and seeks regulation focused only on legal entities.
- Bitcoin trusts and trusts are developed for traditional investors to access in a regulated and simple way.
- Paraguay already has regulated exchanges, OTC, P2P and the purchase of Bitcoin with local bank cards.
- Bitcoin in Paraguay continues to be a great opportunity as long as legal certainty is preserved and a clear message welcoming investment is sent.