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Cryptocurrencies started out as a fun and innocent investment, but over time they have become one of the most researched areas in society that can offer greater benefits. If you are looking for Best Cryptocurrency Casino SitesRest assured, we only look for safe and trustworthy operators here.
Beyond the investment areas where cryptocurrencies are most talked about, there are also studies and speculations about the importance they will gain. In fact, many online businesses are increasingly considering them and even accepting them as a payment method. If there is any obstacle between cryptocurrencies and society, it is the definition of the regulatory and legal framework, but some countries such as Paraguay are already seriously considering this issue.
It is not surprising, therefore, that bills like the one recently proposed in Congress begin to appear, the aim of which is to establish cryptocurrency mining as a recognized industrial sport. In this way, a percentage will be set to determine the percentage of consumption of said activity, as well as other types of aspects related to its management, marketing or custody.
Congressional response
The initiative has been vetoed by Paraguayan President Mario Abdo Benítez and will be discussed again in the relevant chambers of parliament. The Ministry of Industry and Commercial Processes believes that as the project moves forward, industrial activities will require a large injection of energy, which could harm the country’s industrial progress.
Congress has approved a tax rate for this particular type of mining that will not exceed 15% of the current industrial percentage, so, in short, the bill will have to be reviewed separately again. Both chambers will have to decide between the proposal they initially approved or a veto by the executive branch.
The most important points of the bill
As we have already mentioned, the decree emphasizes that today we must consider the mining of crypto assets like any other type of industrial activity. In addition, it will grant a license for the activity for up to 5 years to operators providing such services and persons considered “crypto miners”.
A special unit will also be set up to develop sanctions and measures in this regard. In addition, the proposal points out that this activity requires high energy consumption and the constant use of capital in exchange for scarce labor.
However, as we have commented previously, the Ministry warns that the sustainable and inclusive expansion of Paraguayan industry could be negatively impacted if priority is given to the activities promoted in this project.
Therefore, they suggest that cryptocurrency mining activities be classified in the category of “electricity-intensive consumption” instead of “industrial consumption”, since it does not incur additional costs. Finally, it also warns that if cryptocurrency mining increases at the current rate, Paraguay will be forced to import electricity in less than five years.
On the other hand, the BCP (Central Bank of Paraguay) stated that cryptocurrencies are not protected by the monetary authorities and their custody is not controlled. Security is one of the most missing priorities in the proposal, since there are no protection or security mechanisms like other assets. In addition, he stressed that cryptocurrencies do not fulfill the same main functions as currencies and the investments they imply can be dangerous for many people.
Indeed, the situation can be compared to the legalization of gambling around the world, a space where cryptocurrencies are also rapidly developing. A few years ago, online gambling was classified as equally dangerous and fraudulent, while today it is one of the safest online businesses.
Cryptocurrency sector
Finally, it is worth mentioning that the crypto asset industry has not experienced its best moments. The fact is that this year it suffered a very noticeable crash, which caused the industry to lose almost $1 billion. This meant that countless people lost all their savings and many companies went bankrupt.
Currently, the industry is looking for a way to reverse this situation through a long-awaited update to the software of Ethereum, one of the most popular cryptocurrency platforms. Currently, this crypto asset is one of the best technical bets among many digital currency projects. The update is called “merge”, and many experts say it is a possible solution.
After nearly a decade of discussion the “merger” seems to have finally arrived, now we just have to wait and see if Ethereum exhibits a more efficient structure, especially from an energy point of view. As we have already mentioned, the criticisms regarding the energy impact of cryptocurrencies can only be addressed by making them more efficient. Ultimately, everything has positive and negative effects, and we have to find a way to balance the scales in our favor.
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