Bitcoin, Renewable Energy, and Developing Countries: The Case of Paraguay
Notes on the 21st Century (CBRI), 2019
8 Pages Posted: 24 Jan 2019
Date Written: January 17, 2019
Abstract: This discussion paper considers the nexus of renewable energy, bitcoin, and development economics, by examining the case of Paraguay, which stands at a crossroads in terms of wrestling with development priorities, technological innovations, integration into the world economy, and stark economic inequality. This is predicated on its strong natural endowments in renewable (hydro) energy at Itaipu and its surplus power generation capacity. As the prices of cryptocurrencies fluctuate, and Paraguayan policymakers consider a broader development strategy, the findings of the paper suggest that competing development priorities may allow for Paraguayan pursuit of cryptocurrencies, but it must be balanced with larger considerations such as mitigating persistent economic inequality.
Keywords: Bitcoin, Cryptocurrency, Development, Paraguay, Hydroelectricity, Blockchain, Brazil
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