- Tether denies reports that it is leaving Uruguay due to a $4.8 million debt dispute with the country’s state electricity provider.
- Uruguayan media claim Tether owes $2 million for electricity and $2.8 million for other local projects, resulting in a loss of power to its crypto mining facility.
- Tether states it is working with local authorities and remains committed to resolving outstanding issues and continuing operations.
- High electricity costs in Uruguay are a challenge for crypto mining, with local prices far higher than in neighboring Paraguay.
- Stablecoin adoption is rising in Latin America, with companies like Toyota and MoneyGram increasingly supporting USDT transactions.
Tether, a major stablecoin issuer, has denied reports by local media that it is ceasing operations in Uruguay due to a $4.8 million debt dispute with the state’s electricity provider, the National Administration of Power Plants and Electric Transmissions (UTE). The situation followed UTE cutting power to Tether’s mining facilities when a $2 million electricity bill for May went unpaid.
Local news sources Telemundo and Busqueda reported that in addition to unpaid electricity charges, Tether also owes $2.8 million related to other projects, raising its total local liabilities to about $4.8 million, excluding penalties and interest.
A spokesperson for Tether told Cointelegraph, “We continue to evaluate the best way forward in Uruguay and the region more broadly. While reports have speculated an exit from the region, these do not accurately reflect the situation.” Tether confirmed its local partner is in discussions with the government to resolve the issue, stating it supports finding a solution and remains committed to opportunities in the region.
Uruguay’s high electricity prices are cited in local reports as a challenge for mining operations. Prices in Uruguay range from $60 to $180 per megawatt hour (MWh), much higher compared to about $22 MWh in neighboring Paraguay, where electricity mostly comes from the Itaipu hydropower plant. Tether also operates Bitcoin mining facilities in Paraguay, which has drawn similar operators in the past due to lower energy costs.
Back in 2018, Vici Mining, a South American Bitcoin mining company, relocated from Uruguay to Paraguay to reduce energy expenses. Vici engineer Nicolás Ribeiro stated to Telemundo, “If you look globally at the average electricity price, Uruguay is well above it… when you realize that 80% of your operating cost is electricity, it is a very significant factor when deciding where to establish yourself.”
Local reports indicate Tether was in talks with UTE over a new facility and had requested cheaper electricity rates but declined to comment on the negotiations.
Meanwhile, stablecoin use is increasing in Latin America. Three automakers—Toyota, Yamaha, and BYD—have begun accepting the USDT stablecoin in Bolivia as the U.S. dollar supply falls. In Colombia, MoneyGram recently launched a crypto payment app that helps locals save and transact in U.S. dollar stablecoins amid a weakening peso.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Apple Shares Surge as iPhone 17 Demand Drives Analyst Upgrades
- Crypto Sleuths Expose Scammer Who Stole $32K From Cancer Patient
- U.S. and U.K. Launch Joint Taskforce on Digital Asset Regulation
- Lawmakers Urge SEC to Allow Crypto in $12.5T 401k Market
- Michael Saylor Claims Short Seller Funded Anti-MSTR Social Media Bots
