Key Takeaways:
- Tether denied reports of exiting Uruguay over a $4.8M dispute with state electricity provider UTE, stating it’s evaluating regional operations.
- High electricity costs in Uruguay have raised concerns, with some operations paused and comparisons drawn to Paraguay’s far cheaper energy.
- Despite local challenges, Tether maintains interest in regional mining and USDT adoption in Latin America continues to rise, with usage growing in Bolivia and Colombia.
Tether has denied reports that it is abandoning its $500 million crypto mining ambitions in Uruguay following a $4.8 million debt dispute with state-owned power company UTE.
Local media claimed Tether’s facilities were shut down after UTE cut electricity over an unpaid $2 million May bill, with an additional $2.8 million owed for other projects.
Tether clarified that while financial issues exist, the local operator is in discussions with authorities, and the company remains committed to long-term opportunities in the region.
However, steep electricity costs in Uruguay – ranging from $60 to $180 per megawatt hour (MWh) – pose challenges compared to Paraguay, where Tether also mines and pays as little as $22 MWh thanks to the Itaipu hydropower plant.
Industry precedent exists: in 2018, Vici Mining left Uruguay for Paraguay citing similar cost pressures.
Reports suggest Tether sought discounted electricity rates for new facilities, though negotiations remain undisclosed.
Meanwhile, USDT adoption continues to grow in Latin America.
In Bolivia, Toyota, Yamaha, and BYD now accept USDT payments, while in Colombia, MoneyGram offers USDT savings options to help locals buffer against a weakening peso.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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