U.S. Crypto Regulation Impact on South American Ecosystems

The GENIUS Act mandates that stablecoins be backed by U.S. currency, likely increasing cryptocurrency demand and energy consumption. The International Energy Agency predicts that cryptocurrency-related electricity use may rise by over 40% by 2026, with current consumption at approximately 110 terawatt-hours, significantly impacting local resources in Brazil and Paraguay.

Paraguay has emerged as a key hub for Bitcoin mining, consuming over 700 megawatts of electricity, with projections of reaching 1 gigawatt soon. This trend may exhaust the electricity surplus from the Itaipu Dam within five years, prompting discussions about new energy investments, including natural gas and solar farms, which threaten local biodiversity. Experts warn that infrastructure expansion could isolate wildlife and disrupt ecological balance in critical areas like the Pantanal and Gran Chaco.