Paraguay's love affair with Bitcoin might be hitting the rocks. Lawmakers are proposing a temporary ban on Bitcoin mining, citing its strain on the nation's power grid.

Fourteen senators have banded together to introduce a bill calling for a 180-day halt on all cryptocurrency activity, including mining and storage. Their argument? Crypto miners are draining Paraguay's electricity reserves, taking advantage of the country's famously low rates.

This isn't the first time Bitcoin has caused a stir in Paraguay. The country's abundant hydroelectric power initially attracted miners like moths to a flame. But the boom has come at a cost. The government is struggling to contain illegal mining operations, and the national grid is feeling the pinch.

In 2022, attempts to regulate the crypto industry were vetoed by the president. Now, the senators are proposing a stricter approach: a mining curfew until a proper regulatory framework is in place. This "cooling off" period would also give Paraguay's National Electricity Administration (ANDE) time to bolster the grid and ensure it can handle the energy demands of cryptocurrency.

The situation is particularly alarming in Alto Paraná, a region that's seen nearly 50 cases of crypto-linked electricity theft by February 2024. ANDE estimates these clandestine mining operations are costing the company millions per month.

If left unchecked, the senators warn, these energy guzzlers could inflict financial wounds on Paraguay to the tune of $60 million annually. The proposed ban is a bid to curb the bleeding and force a conversation about responsible crypto integration.