LatinAmerica

Stablecoin issuer Tether has firmly denied reports suggesting it is abandoning its cryptocurrency mining operations in Uruguay over a $4.8 million debt dispute with the state-owned National Administration of Power Plants and Electric Transmissions (UTE). The controversy, sparked by local media claims of unpaid electricity bills and project liabilities, highlights the challenges of energy-intensive crypto mining in high-cost markets. Despite the dispute, Tether reaffirmed its commitment to sustainable growth in the region, as the broader Latin American market embraces stablecoin adoption, signaling a dynamic shift in financial ecosystems.
Tether Refutes Exit Speculation
On September 23, 2025, Tether responded to local media reports from Telemundo and Busqueda, which claimed the company halted its Uruguay operations after UTE disconnected power to its facilities over a $2 million unpaid electricity bill for May. Additional reports cited $2.8 million in liabilities for other local projects, totaling $4.8 million excluding fines. Tether dismissed these claims as inaccurate, stating to Cointelegraph, “We continue to evaluate the best way forward in Uruguay and the region more broadly.” The company acknowledged the debt issue, noting that its local mining partner is engaged in ongoing discussions with the government to resolve the “outstanding friction.”
Tether’s denial underscores its long-term vision for Uruguay, where it announced a $500 million crypto mining venture in November 2023. The project aimed to leverage Uruguay’s renewable energy resources, particularly wind and hydro, to power Bitcoin mining operations. However, high electricity costs, ranging from $60 to $180 per megawatt-hour (MWh), have strained profitability, contrasting sharply with neighboring Paraguay’s $22 per MWh, where Tether also operates mining facilities.
High Electricity Costs Challenge Crypto Mining
Uruguay’s elevated electricity prices, significantly above the global average, pose a formidable barrier for energy-intensive industries like cryptocurrency mining. Local reports linked Tether’s alleged shutdown to these costs, a factor the company did not directly address. The precedent set by Vici Mining, which relocated from Uruguay to Paraguay in 2018 to capitalize on cheaper power from the Itaipu hydropower plant, highlights the region’s competitive dynamics. Vici’s engineer, Nicolás Ribeiro, warned that Tether’s dispute should prompt Uruguayan policymakers to address barriers to retaining such industries.
Tether’s negotiations with UTE for discounted electricity rates for a new facility indicate efforts to mitigate these challenges, though the company remained silent on the specifics. The power cutoff, confirmed on July 25, 2025, affected two mining sites in Flores and Florida, disrupting operations critical to Tether’s regional strategy. Despite these setbacks, Tether emphasized its commitment to finding a “constructive path forward,” signaling resilience amid operational hurdles.
Stablecoin Adoption Surges in Latin America
The dispute occurs against a backdrop of growing stablecoin adoption in Latin America, where economic instability is driving demand for dollar-pegged assets like Tether’s USDT. In Bolivia, vehicle manufacturers Toyota, Yamaha, and BYD have begun accepting USDT for payments to counter dwindling U.S. dollar reserves, reflecting a shift toward crypto-based solutions. Similarly, in Colombia, MoneyGram’s crypto payments app enables locals to save in US dollar stablecoins, addressing the weakening Colombian peso. These trends highlight stablecoins’ role in stabilizing economies facing currency depreciation.
The broader cryptocurrency market, valued at over $4 trillion, is witnessing increased institutional and retail adoption, bolstered by 43 Bitcoin ETFs and 21 Ethereum ETFs globally, with $625 billion in inflows in 2025. Stablecoins, holding a $190 billion market cap, are central to this growth, offering stability and utility for transactions and savings in volatile regions like Latin America.
Challenges and Strategic Implications
Tether’s Uruguay dispute underscores the broader challenges of scaling crypto mining in high-cost environments. Uruguay’s renewable energy appeal is offset by its expensive electricity, which contrasts with Paraguay’s cost advantage, driving firms to seek more economical locations. The $4.8 million debt, while significant, represents a fraction of Tether’s financial capacity, but the reputational and operational impact could influence investor confidence in its regional strategy.
The company’s ongoing discussions with UTE signal a commitment to resolving the issue, potentially through revised energy agreements or operational adjustments. However, the dispute highlights the need for policymakers to balance renewable energy investments with competitive pricing to attract tech-driven industries. Tether’s operations in Paraguay, where electricity costs are lower, provide a fallback, but the company’s insistence on staying in Uruguay suggests strategic importance beyond immediate economics.
A Resilient Path Forward
Tether’s rejection of exit rumors and its proactive engagement with Uruguayan authorities reflect a broader vision for sustainable cryptocurrency operations in Latin America. As stablecoin adoption accelerates, driven by economic needs in Bolivia and Colombia, Tether is well-positioned to capitalize on regional demand. The Uruguay dispute, while a setback, underscores the complexities of integrating crypto mining with local infrastructure, offering lessons for policymakers and industry leaders alike.
With the global cryptocurrency market thriving, Tether’s commitment to resolving its $4.8 million debt and sustaining its Uruguay operations signals resilience and adaptability. As Latin America embraces digital assets, Tether’s strategic maneuvers will shape the region’s role in the evolving financial landscape, balancing innovation with economic realities.
#USDT #BTC #Bitcoinmining #Stablecoins #LatinAmerica

Stablecoin issuer Tether has firmly denied reports suggesting it is abandoning its cryptocurrency mining operations in Uruguay over a $4.8 million debt dispute with the state-owned National Administration of Power Plants and Electric Transmissions (UTE). The controversy, sparked by local media claims of unpaid electricity bills and project liabilities, highlights the challenges of energy-intensive crypto mining in high-cost markets. Despite the dispute, Tether reaffirmed its commitment to sustainable growth in the region, as the broader Latin American market embraces stablecoin adoption, signaling a dynamic shift in financial ecosystems.
Tether Refutes Exit Speculation
On September 23, 2025, Tether responded to local media reports from Telemundo and Busqueda, which claimed the company halted its Uruguay operations after UTE disconnected power to its facilities over a $2 million unpaid electricity bill for May. Additional reports cited $2.8 million in liabilities for other local projects, totaling $4.8 million excluding fines. Tether dismissed these claims as inaccurate, stating to Cointelegraph, “We continue to evaluate the best way forward in Uruguay and the region more broadly.” The company acknowledged the debt issue, noting that its local mining partner is engaged in ongoing discussions with the government to resolve the “outstanding friction.”
Tether’s denial underscores its long-term vision for Uruguay, where it announced a $500 million crypto mining venture in November 2023. The project aimed to leverage Uruguay’s renewable energy resources, particularly wind and hydro, to power Bitcoin mining operations. However, high electricity costs, ranging from $60 to $180 per megawatt-hour (MWh), have strained profitability, contrasting sharply with neighboring Paraguay’s $22 per MWh, where Tether also operates mining facilities.
High Electricity Costs Challenge Crypto Mining
Uruguay’s elevated electricity prices, significantly above the global average, pose a formidable barrier for energy-intensive industries like cryptocurrency mining. Local reports linked Tether’s alleged shutdown to these costs, a factor the company did not directly address. The precedent set by Vici Mining, which relocated from Uruguay to Paraguay in 2018 to capitalize on cheaper power from the Itaipu hydropower plant, highlights the region’s competitive dynamics. Vici’s engineer, Nicolás Ribeiro, warned that Tether’s dispute should prompt Uruguayan policymakers to address barriers to retaining such industries.
Tether’s negotiations with UTE for discounted electricity rates for a new facility indicate efforts to mitigate these challenges, though the company remained silent on the specifics. The power cutoff, confirmed on July 25, 2025, affected two mining sites in Flores and Florida, disrupting operations critical to Tether’s regional strategy. Despite these setbacks, Tether emphasized its commitment to finding a “constructive path forward,” signaling resilience amid operational hurdles.
Stablecoin Adoption Surges in Latin America
The dispute occurs against a backdrop of growing stablecoin adoption in Latin America, where economic instability is driving demand for dollar-pegged assets like Tether’s USDT. In Bolivia, vehicle manufacturers Toyota, Yamaha, and BYD have begun accepting USDT for payments to counter dwindling U.S. dollar reserves, reflecting a shift toward crypto-based solutions. Similarly, in Colombia, MoneyGram’s crypto payments app enables locals to save in US dollar stablecoins, addressing the weakening Colombian peso. These trends highlight stablecoins’ role in stabilizing economies facing currency depreciation.
The broader cryptocurrency market, valued at over $4 trillion, is witnessing increased institutional and retail adoption, bolstered by 43 Bitcoin ETFs and 21 Ethereum ETFs globally, with $625 billion in inflows in 2025. Stablecoins, holding a $190 billion market cap, are central to this growth, offering stability and utility for transactions and savings in volatile regions like Latin America.
Challenges and Strategic Implications
Tether’s Uruguay dispute underscores the broader challenges of scaling crypto mining in high-cost environments. Uruguay’s renewable energy appeal is offset by its expensive electricity, which contrasts with Paraguay’s cost advantage, driving firms to seek more economical locations. The $4.8 million debt, while significant, represents a fraction of Tether’s financial capacity, but the reputational and operational impact could influence investor confidence in its regional strategy.
The company’s ongoing discussions with UTE signal a commitment to resolving the issue, potentially through revised energy agreements or operational adjustments. However, the dispute highlights the need for policymakers to balance renewable energy investments with competitive pricing to attract tech-driven industries. Tether’s operations in Paraguay, where electricity costs are lower, provide a fallback, but the company’s insistence on staying in Uruguay suggests strategic importance beyond immediate economics.
A Resilient Path Forward
Tether’s rejection of exit rumors and its proactive engagement with Uruguayan authorities reflect a broader vision for sustainable cryptocurrency operations in Latin America. As stablecoin adoption accelerates, driven by economic needs in Bolivia and Colombia, Tether is well-positioned to capitalize on regional demand. The Uruguay dispute, while a setback, underscores the complexities of integrating crypto mining with local infrastructure, offering lessons for policymakers and industry leaders alike.
With the global cryptocurrency market thriving, Tether’s commitment to resolving its $4.8 million debt and sustaining its Uruguay operations signals resilience and adaptability. As Latin America embraces digital assets, Tether’s strategic maneuvers will shape the region’s role in the evolving financial landscape, balancing innovation with economic realities.
#USDT #BTC #Bitcoinmining #Stablecoins #LatinAmerica