BREAKING: Paraguay Proposes a Bill to Make Bitcoin Legal Tender

By Godfrey Benjamin
Published June 24, 2021 Updated June 25, 2021
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BREAKING: Paraguay Proposes a Bill to Make Bitcoin Legal Tender

By Godfrey Benjamin
Published June 24, 2021 Updated June 25, 2021

South American nation, Paraguay is on track to make Bitcoin (BTC) a legal tender following the announcement of the proposal of a bill to support the move. The bill proposal was affirmed by a member of parliament Carlitos Rejala who shot into global fame in the past weeks.

The bill, if passed will position Paraguay as the second country to embrace Bitcoin as legal tender after El Salvador.

Carlitos said the bill will help position the country to trail the path of growth for the next generation.

Bitcoin has seen both worse and best days in the past few months as the cryptocurrency’s energy-related FUD swayed prices away from its All-Time High (ATH) of $64,000. However, news of Bitcoin becoming a legal tender in El Salvador has helped to cushion the market. This trend can be bolstered by the proposal of this similar bill in Paraguay.

The Bitcoin-as-a-Legal Tender Pathway Can be Sweet and Sour

The plan to make Bitcoin a legal tender may not be as smooth as envisaged, going by the current travails of El Salvador with the World Bank. While the International Monetary Fund (IMF) earlier raised economic concerns with respect to the plans El Salvador has to make Bitcoin a legal tender, the World Bank denied the country any help to implement the cryptocurrency in its monetary system.

According to the World Bank, per an earlier Coingape report;

“We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes. While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”

El Salvador is set to tap into its Volcanoes to generate geothermal energy it is set to use in mining Bitcoin.

Paraguay in the Picture

The consideration of Bitcoin as a major currency in Paraguay and the bid to make the nation a crypto hub is based on the availability of cheap renewable energy in the country. Several stakeholders are notably working with Rejala to introduce bills that will advance the positioning of Paraguay as a Bitcoin hub.

While the majority (about 90%) of Paraguay’s energy is exported to other countries including Brazil and Argentina, backers of the Bitcoin-as-a-Legal tender bill are optimistic the nation can trail El Salvador in pushing forth clean Bitcoin mining activities.

 

 

 

 

 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Godfrey Benjamin
177 Articles
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

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