Paraguay Following Footsteps Of El Salvador
On Wednesday, June 9, 2021, the Latin American country – El Salvador marked its name on history to become the first country across the world which adopted bitcoin as a legal tender. Its President Nayib Bukele approved this proposal to embrace the rapid growth of technology and digital by accepting cryptocurrency as a legitimate asset for legal transactions. Inspired by the pioneering step, Paraguay is likely to be the second country to make cryptocurrency a legal tender.
Paraguay Opening Its Arms Towards The Digital Future
Cryptocurrency is rapidly proliferating and becoming a popular asset to hold onto. Industries and government institutions around the globe are recognizing this ‘virtual currency’. El Salvador created a landmark in the course of the history of the internet and technology with its legislation.
Just the day after bitcoin was made a legal tender there, the Deputy of Paraguay, Carlos Antonio Rejala Helman tweeted on his Twitter account on June 7, 2021 (quoting the exact words from his tweet) …
“Como ya lo decía hace un buen tiempo, nuestro país necesita avanzar de la mano de la nueva generación.
Llegó el momento, nuestro momento.
Esta semana empezamos con un proyecto importante para innovar a Paraguay frente al mundo!
El verdadero to the moon Rocket #btc & #paypal”
Translated in English it says, “As I was saying a long time ago, our country needs to advance hand in hand with the new generation. The moment has come, our moment. This week we start with an important project to innovateParaguay in front of the world!
The real one to the moon.”
The deputy suggests he intends to work on provisions regarding the PayPal (most popular digital transaction interface app among the youth) and Bitcoin.
This tweet gave rise to enthusiasm and optimism among crypto investors. Their prayers were answered with blessings, on Friday just after the tweet, the Paraguay Deputy made it an official announcement that the country will prepare and implement a new bill regarding the legislative provisions for cryptocurrency in July 2021.
This was stated in Carlitos Rejala’s tweet on 17th June 2021, “This is Paraguay July we legislate! #Bitcoin”
The Paraguay official also aims to make the nation a crypto mining hub for bitcoin and other coins. Considering the clamping down of crypto mining ‘farms’ in China. Here, the officials in Latin America have decided to harbor and utilize the abundance of renewable energy (thermal energy) from the volcanos and create a clean energy-driven crypto mining center. The CEO of Bitcoin.com.py, Juanjo Benitez Rickmann confirmed via his tweet that the Deputy/ Congressman has partnered up with the nation’s crypto community to prepare the country to set up a “hub for the crypto investors of the world and subsequently to be placed among the ones on the cutting edge of digital technology”.
Other Latin American Countries Stepping Up Their Law Around Cryptocurrency
Post provisions of El Salvador, Panamanian congressman Gabriel Silva tweeted on the same day as Paraguay congressman, June 7, 2021, and stated “This is important. And Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies.” The congressman in Panama also addressed its citizens that a new bill for legalizing cryptocurrency awaits in July.
Argentina, the nation suffers from numerous economic woes such as the current situation of debt, hyperinflation, constant devaluation of the currency and this has been the situation for years at a stretch. However, bitcoin miners and cryptocurrency users, and investors have changed the economical fortune of the country. In June 2021, Argentina was ranked the fourth most crypto user-populated country worldwide followed by Turkey, Brazil, and Columbia.
In Brazil, the financial governing bodies have outlined the framework and its regulations don’t have any restrictions on cryptocurrency. Bitcoin is a legal tender there; it can be used as a medium of transaction for anything which is not illegal.
The booming of cryptocurrency in Latin America has supported the majority of the population here, especially the youth. These digital currencies have paved a way for various startups. One such flourishing start-up in Mexico is ‘Bitso’ it is “the first fintech in Mexico to reach a valuation of more than $1.0 billion in the market” told Cometa. There are various other success stories, such as ‘Quantum’ in Brazil &c.
This industry has gradually taken up the ‘fiat’ form in Latin America and has become a potential cause of economic prosperity and entrepreneurship.