Paraguya could be the next country to legalize cryptocurrencies. The bill only has to be approved by the Senate before being signed by the President.
Le Paraguay has long been a major contender as the next country to make a cryptocurrency legal tender. The operation may not be on the agenda (yet), but today Paraguay has taken an important step towards the full legalization of cryptocurrencies. Indeed, Congress has just approved a bill on crypto mining and exchange.
Paraguya could be the next country to legalize cryptocurrencies
The Chamber of Deputies voted 40 to 12 in favor of this law, introduced by the Senate in July 2021. It aims to regulate commercial activities related to crypto, including trading, administration and mining, all under the coordination and supervision of the Ministry of Industry and Commerce (MIC) in coordination with the National Securities Commissionle Secretariat for the Prevention of Money or Asset Launderingthe National Electricity Administration and the Ministry of Finance. This bill must now be approved by the Senate before the President can sign it into law.
This would make Paraguay an important area for mining as the country already offers the cheapest electricity in Latin America, at just 5 cents per kilowatt hour. Crypto service providers and miners could get a five-year license from the MIC.
The bill only needs to be approved by the Senate before being signed by the President
That being said, opponents of crypto are also very present in the country. The Central Bank of Paraguay (BCP) commented for example last March that the advantages of the regulation of digital assets would not necessarily outweigh the disadvantages, such as “electricity consumption, loss of reputation and costs for the financial system”. In addition to the BCP, MP Basilio Núñez recalled that crypto “favors organized crime” and MP Tadeo Rojas added that job creation for crypto mining did not offset the increase in mining energy consumption.
According to a report by Statista, half of fintech companies in Paraguay authorized digital payments for businesses and individuals in 2022, a figure that has been steadily growing.