Brazil is widely assumed to be an unfavorable geography to mine bitcoin because of taxes, energy costs and bureaucracy, even as neighboring countries Argentina and Paraguay have seen growing interest from international operators.
But that dynamic could soon be changing due to various factors, including legislative proposals to exempt bitcoin mining hardware from import taxes and large amounts of energy produced domestically that goes unused.
I sat down with Arthur Mining CEO Ray Nasser to discuss why he’s optimistic about bitcoin mining in Brazil, particularly if import tax relief is granted for mining rigs.
Please note that when we recorded this conversation, the mining exemption - despite some contention - was still included in the text of the crypto bill being considered in the Brazilian Congress.
However, Deputy Expedito Netto - the rapporteur for the bill - did not include the text in a new version of the bill presented before the Chamber of Deputies earlier this week. (It was just one of a number of other measures that were stripped out, including asset segregation and the requirement that crypto brokers operating in the country are registered with CNPJ numbers at the time of the bill’s signing.)
Thus, the fate of this particular mining provision is uncertain. However, the fact that a provision like this is being seriously considered this late in the legislative process testifies that 1) idea has merit and 2) it has powerful forces pushing for its enactment. These are reasons to be believe this is a step in the right direction.
I really enjoyed this conversation with Ray and I hope you learn as much from it as I did.
You can also listen to this episode on Spotify here!
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