Is Paraguay set to become the second country to regulate cryptocurrency?
Following El Salvador’s historical moment when the country voted to make Bitcoin a legal tender on June 8th, another Latin America country is set to follow. The decision was applauded by politicians including those in Argentina, Brazil and Panama but is Paraguay set to become the second country to accept Cryptocurrency and what does this mean for Cryptocurrency in Paraguay?
Paraguay aiming to regulate Cryptocurrency
Lawmaker Carlos Rejala tweeted “This is Paraguay, July we legislate! #Bitcoin”, which sparked a huge interest in the Crypto World. Rejala, who leads a small political party in Paraguay with a total of four seats in Congress, is now seeking the support of Congress to pass his three drafts of the law to regulate cryptocurrency in the country by July 2021.
Rejala said that despite not having anything like a majority in Congress, lawmakers with other parties were interested in his proposal and he was confident of approval.
“We want the regulators and banks to also participate so that Paraguayans or foreigners can operate with these assets legally because we know that illegal transactions exist here and in other countries,” he said.
“We want to be a crypto-friendly country.”
What is the benefit for Paraguay?
With an average age of 26.3years, Paraguay is dominated by Millenials who are tech-savvy and familiar with Cryptocurrency. These regulations could then establish a clear state and further bring in more revenue to the country. This could then provide crypto-related for the young labour force of Paraguay.
Rejala outlined his vision for Bitcoin use in Paraguay, saying he was working with “the Paraguayan crypto community in order for Paraguay to become a hub for the crypto investors of the world and subsequently to be placed among the ones on the cutting edge of digital technology”.
On the same day, Juanjo Benitez Rickmann, the CEO of crypto exchange Bitcoin.com.py, confirmed on Twitter that he was collaborating with the congressman “to introduce a project in Congress so that Paraguay becomes a crypto-friendly country for worldwide crypto investors, taking advantage of the renewable and inexpensive energy provided by hydroelectrics”.
It is also worth noting that Bitcoin has also lately been criticized by environmentalists due to the enormous amount of energy taken up for the mining operations. Nearly 100 per cent of the country’s electricity needs are served by hydroelectric plants which are safe for the environment and this is also where Paraguay is the perfect breeding ground for the Crypto community who are looking for a new place after activities in China has recently been restricted.
What does this mean for Cryptocurrency going ahead?
It is a fact by now that even though the price of Bitcoin recently dipped from its all-time high of $61.000, there is still a huge interest from the community going ahead. Cryptocurrency in itself doesn’t only provide enormous gains for people trading or holding it but it also provides job opportunities which is extremely beneficial for a developing country as Paraguay.
Cryptocurrency is going to continue its growth going ahead in the future but of course there must be some form of regulations present to make sure all parties are benefited. Hopefully, this will be another huge step for cryptocurrency adoption for the global community.
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