South American nation, Paraguay is on track to make Bitcoin (BTC) a legal tender following the announcement of the proposal of a bill to support the move. The bill proposal was affirmed by a member of parliament Carlitos Rejala who shot into global fame in the past weeks.
The bill, if passed will position Paraguay as the second country to embrace Bitcoin as legal tender after El Salvador.
Carlitos said the bill will help position the country to trail the path of growth for the next generation.
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!
— Carlitos Rejala 🙏🇵🇾🙌 (@carlitosrejala) June 7, 2021
Bitcoin has seen both worse and best days in the past few months as the cryptocurrency’s energy-related FUD swayed prices away from its All-Time High (ATH) of $64,000. However, news of Bitcoin becoming a legal tender in El Salvador has helped to cushion the market. This trend can be bolstered by the proposal of this similar bill in Paraguay.
The Bitcoin-as-a-Legal Tender Pathway Can be Sweet and Sour
The plan to make Bitcoin a legal tender may not be as smooth as envisaged, going by the current travails of El Salvador with the World Bank. While the International Monetary Fund (IMF) earlier raised economic concerns with respect to the plans El Salvador has to make Bitcoin a legal tender, the World Bank denied the country any help to implement the cryptocurrency in its monetary system.
According to the World Bank, per an earlier Coingape report;
“We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes. While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”
El Salvador is set to tap into its Volcanoes to generate geothermal energy it is set to use in mining Bitcoin.
Paraguay in the Picture
The consideration of Bitcoin as a major currency in Paraguay and the bid to make the nation a crypto hub is based on the availability of cheap renewable energy in the country. Several stakeholders are notably working with Rejala to introduce bills that will advance the positioning of Paraguay as a Bitcoin hub.
While the majority (about 90%) of Paraguay’s energy is exported to other countries including Brazil and Argentina, backers of the Bitcoin-as-a-Legal tender bill are optimistic the nation can trail El Salvador in pushing forth clean Bitcoin mining activities.