Paraguay has officially announced plans to launch a state-run cryptocurrency mining project using confiscated equipment. The initiative will be operated by the crypto company Morphware, which has entered into a strategic agreement with the country's National Electricity Authority (ANDE). Authorities hope this move will allow for the efficient use of the seized equipment and the conversion of excess electricity into a significant economic resource.

Morphware CEO Kenso Trabing emphasized that the project has comprehensive goals: in addition to Bitcoin mining, the equipment will be used to generate computing power necessary for the development of artificial intelligence infrastructure. According to Trabing, the use of regulated state-owned platforms will transform the untapped potential of the national energy system into a high-performance computing asset. In theory, this should strengthen Paraguay's position both in the blockchain technology segment and in the global AI economy.

However, the expert community views this initiative with considerable skepticism, citing the low technical efficiency of the devices involved. Power engineer Nelson Cristaldo noted that the confiscated equipment was both physically and morally obsolete, lagging behind modern market standards by two or more generations. Given the high mining difficulty, maintaining profitability with such equipment could prove a near-impossible task for the state budget.

Paraguay has long been one of the most attractive hubs for the crypto industry due to its extremely low electricity prices. However, following the mass dismantling of more than 30 illegal mining farms in 2024, the government dramatically tightened its legislation, introducing criminal penalties for illegal cryptocurrency mining with prison terms of up to ten years. These measures triggered the exodus of major international players such as Bitfarms and Marathon Digital. Now, in an attempt to restore order, the authorities have required all remaining operators to undergo strict registration with the Ministry of Industry and Commerce in order to obtain a five-year operating license.