This Country Could Make Bitcoin a Legal Tender After El Salvador

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Updated 10 Jul, 2021 | 07:26:46 PM UTC

This Country Could Make Bitcoin a Legal Tender After El Salvador

El Salvador, the small Latin American state created history in June after it became the first country to pass Bitcoin as a legal tender. The Bitcoin Bill was passed by the country’s congress with a resounding majority and the President assured the decision was no gimmick. Now El Salvador could be joined by another Latin American nation in its quest to make Bitcoin a legal tender.

Paraguay, another small central American nation is all set to introduce a Bitcoin bill this coming Wednesday. Carlitos Rejala, the deputy of Paraguay has hinted at a possible big incoming news on July 14 regarding Bitcoin introduction of a Bitcoin Bill in the Paraguayan parliament by senator Fernando Silva Facetti.

Paraguay had earlier denied that they would be following in the footsteps of El Salvador and their only focus at present is on regulating the Bitcoin market rather than making it a legal tender. However, the recent comments from the deputy have sparked debate about a possible Bitcoin legal tender bill again.

How feasible it is for Paraguay to follow El Salvador

El Salvador president Nayib Bukele had made it clear that the decision on Bitcoin was well thought out and was made to offer financial freedom to more than 70% of the unbanked population in the country. Over the past month after making BTC the legal tender President Bukele also announced a national Bitcoin wallet program offering $30 in free BTC to every adult citizen. Apart from a national wallet program, Salvador is also working on clean Bitcoin mining using its geothermal plants.

Paraguay might follow in the footsteps of Salvador, but at the same time they must be ready to face the ire of international organizations such as the World Bank and IMF who have not just refused to help Salvador in implementing Bitcoin as legal tender, even condemned their step citing Bitcoin’s volatile nature.

Latin America is a hub for small nations such as El Salvador, Paraguay, Argentina, and few others who are going through high inflation and lack of banking facilities, forcing them to look for alternatives.

Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Published by

Prashant Jha

Updated 10 Jul, 2021 | 07:26:46 PM

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