Tether denies leaving Uruguay: What Happened to the Rp8.3 Trillion Mining Project?

Jakarta, Pintu News – The world’s largest stablecoin issuer, Tether (USDT), has denied local Uruguayan media reports that the company halted a $500 million (≈ Rp8.3 trillion) crypto mining project in the country due to an electricity debt dispute.

The news first surfaced in local media outlets Telemundo and Busqueda, which reported that state utility company UTE cut off electricity to Tether’s facility due to an unpaid May bill of $2 million. The total arrears reportedly reached $4.8 million, including other projects, on top of fines and surcharges.

Tether: “We’re Not Quitting Uruguay”

In a statement to Cointelegraph (September 22, 2025), Tether emphasized that reports of them leaving Uruguay “do not reflect the actual situation.”

The company acknowledged differences with local authorities, but emphasized that the local operator running the mining facility is still in talks with the government to resolve the issue.

“Tether remains supportive of these efforts and is committed long-term to creating sustainable opportunities in the region,” the company wrote.

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Electricity Cost is a Big Challenge

One of the reasons for leaving is the high cost of electricity in Uruguay, which ranges from $60-$180 per MWh, far above Paraguay’s $22 per MWh thanks to Itaipu hydro power.

These high costs make Uruguay less attractive to energy-intensive industries such as crypto mining and artificial intelligence (AI). Tether itself has not commented directly on electricity rates, but is said to have asked for discounted electricity rates for new facilities.

Not the First Case

Uruguay has also previously lost big mining players. In 2018, the company Vici Mining moved their operations to Paraguay due to cheaper electricity costs.

According to Vici engineer Nicolás Ribeiro, up to 80% of mining operating costs come from electricity, so energy prices are a key determinant of where to invest. He said the Tether case should be a “wake-up call for policymakers” if they want to attract energy-intensive industries.

Stablecoin adoption on the rise in Latin America

Despite facing obstacles in Uruguay, Tether (USDT) has seen growing adoption in the Latin American region.

• In Bolivia, three major automotive manufacturers – Toyota, Yamaha, and BYD – started accepting USDT as a means of payment amid the dollar crisis.
• In Colombia, MoneyGram launched a stablecoin-based payment app to help people deal with the weakening peso.

This shows that despite the challenges facing the mining business, the use of stablecoins continues to increase in LATAM’s real sector.

Conclusion

Tether rejected claims of leaving Uruguay and affirmed its commitment to continue operating in the region, despite facing electricity debt disputes and high energy cost challenges. This case shows how the cost of electricity is key to the sustainability of the crypto mining business in South America.

Meanwhile, adoption of stablecoins like USDT continues to grow in Bolivia, Colombia, and Paraguay, marking Tether’s increasingly important role in the regional digital finance ecosystem.

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Reference:

• Brayden Lindrea, Cointelegraph. Tether denies reports it ditched $500M crypto project in Uruguay. Accessed September 23, 2025