Paraguay President Benitez Rejects Crypto Mining Regulation
Categories: Crypto News
Paraguay PresidentBenitez Rejects Crypto Mining Regulation
BenitezDoesn't Want to Regulate Crypto Mining
The billcalls for two specific things. Number one, it asks for committees and agenciesthroughout the country to explore the benefits of mining to see if it couldpotentially be transformed into an industrial activity. This would bring itunder a more centralized rooftop, ensuring it was utilized by the governmentand leading institutions.
Second, thebill would require all crypto miners within the country to becomelicensed, and thus they would have to meet certain requirements before theycould extract crypto units from the blockchain. Benitez is having none of this,the main reason being because he feels that crypto mining utilizes toomuch electricity to be expanded into a national industry.
While thisis rough to consider, it's also good to know that there is a leader out therethat realizes crypto was not necessarily meant to be regulated like acentralized platform. Cryptocurrency was brought to fruition severalyears ago as a means of giving users financial independence. They would nothave to go through the same rigorous protocols they're often subjected tothrough standard banks.
Instead,virtually anyone could buy, sell, and trade digital currencies so long as theyhad access to a unique wallet and the internet. From there, they could engageon a crypto journey that could bring them the independence they were likely sodesperate for. This is what crypto has always been about, which makes theregulation argument that encircles it nowadays something of a catch-22.
However,there is also a downside in that Benitez appears to have fallen victim (likemany people nowadays) to the notion that crypto mining uses more electricitythan anyone thought imaginable. There have been multiple reports produced onthis subject over the years, and there are many analysts out there that seem tothink bitcoin mining utilizes more electricity than many developing countries.
TheCrypto Arguments Continue
Sadly, thisidea has buried its way into the heads of many leading digital currencyexperts, Elon Musk being a big one. As the billionaire entrepreneur behindcompanies like Tesla and SpaceX (and a seemingly huge crypto fan), Muskannounced early last year that he was going to allow bitcoin holders topurchase electric vehicles through Tesla dealerships.
This goteveryone excited, but unfortunately, the hype was short-lived as just a fewweeks later, Musk rescinded the decision claiming he was worried about how muchenergy use was going into crypto mining. Until miners were more transparentabout their sources and more willing to resort to green methods, he was notgoing to move forward with auto based BTC transactions.