Paraguay plans on legalizing Bitcoin?
The month began with El Salvador steering a buzz with the bill submission of making digital currency legal. This formulated into law and will come into effect from September. Now, Paraguay is set to follow a similar route. They proposed a bill which plans to make bitcoin legal tender. If this bill transforms into a law. They would be second in line to accept Bitcoin legally. On the one hand, there is China. The world’s second-largest economy shutting 90% of all cryptocurrency mining. On the other there is Paraguay. Whose plan is to promote cryptocurrency.
Supported by a few members of the parliament, opposed by some lawmakers, the ultimate decision lies with the government. We as spectators, witness the country going through some drastic changes. The acceptance of digital currency in the presence of fiat money is a threat to many. Is it a bizarre bullish move or a premeditated plan ensuring a secure future?
Does Paraguay plan to make Bitcoin legal tender?
It’s essential to focus on the intricacies of Paraguay’s proposed bill to entirely understand their course of action.
Carlitos Rejala a Member of Parliament and a cryptocurrency enthusiast made a statement pertaining to the conformation of the Bitcoin bill. This positive news resulted in a price hike for the coin. Many countries are endorsing cryptocurrency. Legal adoption isn’t as easy as it sounds. Digital money aims at decentralization. It eliminates financial institutions and mediators. Rejala claims the bill would place their country on a journey of success and prosperity for years to come. Bitcoin is the future and Paraguay might be a financial giant of the crypto kingdom.
As novel and futuristic as this may sound. There are various hurdles along the path. The International Monetary Fund showed economic concerns. The World Bank denied any support for implementing cryptocurrency within the monetary systems. They have not to support these two countries. Fearing this bill would deem them redundant.
Will Paraguay be the next El Salvador?
The proposed bill has been wrongly interpreted. It seeks to regulate the digital asset. Their aim is to regulate cryptocurrency and not make it legal tender. For a country like Paraguay, such a step is impossible to take. They wish to appease the regulators/ banks. Along with curbing problems like illegal transactions. The world is constantly proceeding towards progress. One way to do that acceptance of the fact, cryptocurrency is here to stay. Ultimately many nations will be a part of this movement.
Striking a balance is crucial. A balance sustaining traditional ways along with stimulating modern ways. The balance of being a crypto-friendly and an environment-friendly nation. Paraguay believes it can become a crypto hub. Utilizing cheap and renewable sources of energy to attain this. China and Iran has partially banned mining. A decision arrived at upon critically reviewing the devastating imprint it has on our Ecosystem.
Future of Paraguay
If Paraguay plans on making bitcoin legal tender. The result would be. Heavy rewards once cryptocurrency acquires global acceptance. Making them leaders of the crypto universe later. Central bank of Tanzania is investigating Bitcoin currently. They may the third nation to hop on the Bitcoin bandwagon.
Each country has a unique and firm stance on the issue of cryptocurrency. Rejala, says the country plans to legislate bitcoin as a medium of exchange. The bill’s plans to make bitcoin complete legal tender. Or does aim to simple regulate. It’s not yet determined. The American University in Paraguay has already set up a crypto wallet. They are accepting fee payments via digital cash. If the bill is passed various opportunities would present themselves. Benefiting Bitcoin businesses, entrepreneurs even miners.