Stablecoin issuer Tether refused the widespread report of this local media that came out of Uruguay in a $ 4.8 million debt dispute with one of the country’s state-owned creatures.
According to In the local telemondal news source, Tether turned down crypto mining operations and future plans after the national administration of plants and electric transmissions (UTE) that did not power in its facilities for failing to fulfill a $ 2 million electricity bill for May.
It also reports that Tether also owes around $ 2.8 million for other local projects, bringing total responsibility to nearly $ 4.8 million, excluding fines and surcharges, Telemundo said on Saturday, citing fellow local News Busqueda news outlets, first reported The news two days before.
But Tether knocked out comments on Cointelegraph on Monday, stating: “We will continue to check the best way forward in Uruguay and the region more broadly. As reports think of an exit from the region, they do not accurately reflect the situation.”
Tether identified the debt dilemma, saying that the local company that operates crypto mining facilities is engaged in “ongoing government discussion to resolve the remaining strife.”
“Tether remains supporting these efforts and a constructive path that reflects our long -term commitment to sustainable regional opportunities.”
Tether announced plans to start Crypto mining in Uruguay In November 2023, along with local media who have been posting adventures can reach $ 500 million in investment.
Electricity costs in Uruguay are high in Latam standards
While Tether refused the release, local reports were linked to the alleged closing of high electricity costs, with Tether not commenting. Pretty High electricity It made it less attractive for intensive energy operations such as crypto and AI mining.
In Uruguay, electric prices range from about $ 60 to $ 180 per megawatt hour (MWH), which is higher than Paraguay neighborhood, Where electricity can be made for nearly $ 22 MWH from the itaipu hydropower plant.
Tether also runs at Bitcoin mining facilities in Paraguay.
Tether wasn’t the first crypto miners to leave Uruguay
In 2018, South American Bitcoin Mining Company Vici Mining moved its facilities to Paraguay from Uruguay to achieve cheaper electricity costs.
VICI engineer Nicolás Ribeiro on Telemundo: “If you look around the world at the average electricity price, Uruguay is above it. Although it is always a challenge to set up in a new country, when you look at this industry and realize that 80% of your operating cost is electric self.
Ribeiro said the dispute with Tether should serve as a “warning signal” to policy manufacturers about the challenges of attracting and maintaining intensive energy industries.
Tether has been reported talking to the Ute for a new facility, where he demanded that power rates were reduced. Tether didn’t comment on that.
Stablecoin adoption with increasing latam
Meanwhile, three car makers – Toyota, Yamaha, and Byd – Recently began to receive the tether (USDT) Stablecoin for payment in Bolivia to cope with the backdrop of the country’s US dollar reserves.
In Colombia, Western Union rivals Money announced that the crypto payment app will offer local solutions to Save on US dollar stablecoins While the Colombian peso continues to weaken.
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