Stablecoin issuer Tether is not leaving Uruguay over a $4.8 million debt with the country’s electricity entity, UTE. Tether denied reports of exiting the region and is in ongoing discussions to resolve the issue. The company had plans to start crypto mining in Uruguay, projecting $500 million in investment.

Uruguay’s high electricity costs may have led to the alleged shutdown of Tether’s mining operations. Electricity prices in Uruguay can range from $60 to $180 per megawatt hour, making it less attractive for energy-intensive operations like crypto mining. Tether also operates Bitcoin mining facilities in Paraguay.

In 2018, Vici Mining relocated its Bitcoin mining facilities from Uruguay to Paraguay due to the latter’s cheaper electricity costs. The dispute between Tether and UTE highlights the challenges of attracting and retaining energy-intensive industries. Tether was reportedly negotiating for reduced electricity rates for a new facility.

In Latin America, stablecoin adoption is on the rise. Vehicle makers Toyota, Yamaha, and BYD are accepting Tether as payment in Bolivia, while MoneyGram’s crypto payments app in Colombia offers a solution to save in US dollar stablecoins. This comes as Bolivia’s US dollar reserves shrink and the Colombian peso weakens.

Read more at Cointelegraph: Tether Denies Claims it Abandoned Uruguay Crypto Project