Paraguay has laid the stage for the acceptance of cryptocurrencies, only weeks after El Salvador made bitcoin a legal tender.
Legislator Carlitos Rejela said on Twitter lately that he will present a bill to legalise bitcoin in the National Congress next month. While China is cracking down on cryptocurrencies, governments in South America are warming to them.
Paraguay, a South American country, is the second country after El Salvador to seek legislation to make Bitcoin legal tender. On Thursday night, a bill in support of cryptocurrency was introduced.
Carlitos Rejala, a member of parliament who has been a vocal proponent of Bitcoin and has gained international attention in recent weeks, verified the bill proposal. If the measure passes, Paraguay will become the second country to recognise Bitcoin as its official currency.
South American countries have been more open to adopting Bitcoin because they believe it will offer them a competitive advantage over other countries and help them emerge as the next financial superpower. However, making Bitcoin legal tender will not be as simple as it appears. El Salvado isn't exempt.
We are dedicated to assisting El Salvador in a variety of ways, including ensuring currency transparency and streamlining regulatory processes. While the government approached us for help with bitcoin, the World Bank is unable to support it because to environmental and transparency concerns, according to a World Bank report.
Because it has a lot of cheap renewable energy, Paraguay believes it may become a crypto hub. Several stakeholders are collaborating with Rejala to submit measures that would help Paraguay establish itself as a Bitcoin hub. Despite this, there are still concerns about bitcoin mining and its influence on the environment.
Because of the country's ongoing blackouts, Iran prohibited bitcoin mining in the country for three months last month. Elon Musk and Tesla have also reversed their decision to accept Bitcoin payments due to similar concerns.
