In an unprecedented decision in the region, Paraguay is making progress in implementing a state Bitcoin mining scheme using equipment seized in operations against illegal farms. The initiative, led by the National Electricity Administration (ANDE), aims to convert a structural problem of energy theft into a source of income for the State
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The plan is articulated through a memorandum of understanding signed with the technological infrastructure company Morphware, which will provide technical knowledge and training. The objective is to put into operation some 30,000 machines that remained inactive in official warehouses after being confiscated for operating outside
the law. The private company Morphware would be the one chosen to face the project under state supervision.
The strategy is based on a key competitive advantage: access to low-cost hydroelectric energy from the Itaipu dam. For decades, Paraguay exported much of that energy surplus at reduced prices. Now, the government seeks to redirect that capacity to mining digital assets to capture greater value within its own economy
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The program includes an initial phase with the installation of 1,500 pieces of equipment in facilities controlled by ANDE, located near electrical substations. These infrastructures will be equipped with ventilation systems, transformers and high-precision measurement devices, under permanent state supervision
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From Morphware, CEO Kenso Trabing defined the agreement as a transformative opportunity. The approach, as he explained, makes it possible to formalize an activity that historically operated in hiding, generating losses for the electrical system, and turning it into a regulated and transparent flow of income
. The Itapú Dam, a project developed jointly between Paraguay and Brazil.
The project also raises questions about the destination of the assets generated. Within the Paraguayan government, two alternatives are being analyzed: selling the bitcoins obtained to finance public spending or accumulating part of them as a strategic reserve, diversifying the country's assets in the face of possible scenarios of global volatility
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Beyond its concrete implementation, the initiative positions Paraguay as an emerging actor on the state cryptocurrency adoption map. In a context where many countries are still debating regulatory frameworks, the country opts for a pragmatic strategy: taking advantage of existing resources to generate value
