According to the Paraguayan Congressman, they have plans to position Paraguay as a hub of cryptocurrency for Latin America and a model for other countries in the region.
Paraguay and Mexico could be prospective new countries on the block in the crypto space. Paraguay Congressman Carlos Rejala hopes to make this happen as he is planning to sponsor a bill in Congress next month, which supposedly would be a light to the South American nation.
Mexico’s lawmaker, Eduardo Murat Hinojosa, has also said he would be submitting a similar Bill in his country. Per his tweet, “I will be promoting and proposing a legal framework for crypto coins in Mexico’s lower house.”
Paraguay’s Congressman, Carlos Rejala, also seeks to connect all government transactions in the country via cryptocurrency. He seeks to involve international mining companies and other crypto businesses.
According to him, the recent happenings in El Salvador has motivated him to take the steps. In his words, “the announcement prompted me not to be afraid and to think that this can be real in my country.”
On Monday, El Salvador announced it would introduce a bill to allow Bitcoin to be treated as a legal tender. The available information has however confirmed that legislators in the country have now approved the Bill making the Central American country the first to adopt the leading crypto asset as a legal tender.
What Would the Crypto Bill Mean for Paraguay?
According to the Paraguayan Congressman, the project seeks to position Paraguay as a hub of cryptocurrency for Latin America, and a model for other countries in the region. Affirming his commitment to cryptocurrency, he plans to send in another bill to promote Bitcoin as a legal tender. He explained further that this has been a longtime goal for local business leaders, who touted Paraguay’s cheap energy as far back as 2018. “However, first we want to give Paraguay a blockchain-friendly status,” he said.
He said the project would allow cryptocurrency companies- whether in mining or any other segments such as exchanges-to finance their Paraguayan operations with cryptocurrencies, remit dividends abroad and capitalize their cryptocurrency profits in local banks.
The cost of electricity in Paraguay is the most inviting condition, which is 0.05$ per kilowatt-hour, and it’s the lowest in the region, and this benefits the mining company since they are the highest consumer of electricity in production. Almost 100 percent of production comes from the hydroelectric source.
Juanjo Benitez Rickman, CEO of local mining company Bitcoin.com.py supported the congressman; during the Bitcoin conference 2021 held in Miami, the CEO said he spoke to several mining pool operators in China who asked for 100-megawatt space. “Maybe it is an opportunity for us to get involved with them and develop,” he said.
Carlos Reba first discovered Bitcoin in 2017 and has been trading ever since he became a member of Congress. Since then, he has been keen on bringing crypto-related transactions to the country, thereby making the country the standard for other South American nations.