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Paraguay could soon have a new regulatory framework. 

On July 14, Paraguay’s Senate passed a bill setting up a new licensing for crypto exchanges and rules for miners, among other areas. The bill is now headed for the president’s desk.

Senator Fernando Silva Facetti tweeted of one advantage: being able to monetize Paraguay’s energy resources: 

2# the law allows Paraguay to use its excess #energy in a prudential manner, at a competitive price for the investor and the State, under conditions imposed by @ANDEOficial and for a maximum term of 5 years.

— FernandoSilvaFacetti (@FSilvaFacetti) July 14, 2022

A landlocked country of 7 million people, Paraguay relies heavily on hydroelectric generation and is a major energy exporter. Still, the country’s electricity consumption has double since 2010, while generation is on the decline. The state power operator, Administración Nacional de Electricidad (ANDE), is pursuing a master plan to in coming years. 

As The Block previously reported, Paraguayan central bank has concerns that a legal regime for cryptocurrency would entail drawbacks including “electricity consumption” associated with crypto mining as well as “loss of reputation and costs for the financial system.”

The debate over whether crypto mining can facilitate more renewable energy generation and strengthen grids, or if it simply saps resources, is ongoing around the world. 

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