Home
News
- For the time being, Bitcoin will not be accepted in Paraguay
- Crypto enterprises, such as exchanges and mining farms, must register with the authorities, according to a leaked prototype version
- That should be the case if Carlitos Rejala and Fernando Silva Facetti, two members of parliament, have their way
For the time being, Bitcoin (BTC) will not be accepted as legal money in Paraguay. On Wednesday, July 14th, the South American country’s parliament was expected to give a green signal to the crypto bill. The officials felt that the law poses severe limitations on the crypto business in Paraguay. According to a leaked prototype version, crypto businesses such as exchanges and mining farms must register with the authorities.
Since El Salvador declared Bitcoin legal tender last month, there has been a lot of buzz about Paraguay becoming the second country to do so. Now news has come from various sources, instead of passing the bitcoin law, Paraguay has decided to regulate cryptocurrencies in the country. The leaked bill had on the other hand had no mention of making Bitcoin or any other cryptocurrency legal in the country.
El Salvador and Paraguay still betting on Bitcoin
Will Paraguay, following El Salvador, become the second country to recognize Bitcoin as legal tender? That should be the case if Carlitos Rejala and Fernando Silva Facetti, two members of parliament, have their way. A comparable bill will be introduced into parliament this week, as Rejala revealed on Twitter on Friday, July 9th.
The content of the statute is unknown at this time. The MPs, on the other hand, are likely to be following the Salvadoran model and want to elevate Bitcoin to the same legal standing as the native money, Guaran. It’s also unknown whether the design will be as well received in the United States as it was in El Salvador.
The document implies that, unlike El Salvador, Paraguay has many of the same concerns about crypto companies as other countries have: taxation. The country appears to want to ensure that crypto businesses are brought under its tax structure from the start and that such transactions and investments are traceable.
Lessons to be learned from El Salvador
While regulation may appear to be a positive move, Paraguay may be taking inspiration from the problems that Salvador’s decision has caused since its announcement — the same news that spurred Rejala, 36, to announce his aspirations to make Paraguay the Latin American crypto hub.
Bitcoin’s usage as a payment method, according to investment firm JPMorgan, may have potentially significant restrictions due to its lack of liquidity. It is estimated that 90 percent of Bitcoins are housed in crypto wallets around the world. This indicates that there aren’t enough Bitcoin to fiat transactions taking place in El Salvador to allow the country to accept Bitcoin and utilize it alongside the US dollar. According to a tiny survey performed by the University of El Salvador, 54 percent of the country’s citizens are doubtful about Bitcoin becoming legal tender.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
