Paraguay May Accept New Crypto Bills Despite Internal Objections

On Wednesday, May 25th, the Chamber of Deputies, Paraguay passed a bill of crypto regulations for trading and mining despite the disapproval of the Budget Commission and Central Bank. Soft taxation and low electricity prices provided the government with a golden opportunity to pass new laws and make Paraguay a hot spot for crypto adoption. 

After the Central Africa Republic and El Salvador adopted bitcoin as a legal tender, Paraguay became a crypto market for Blockchain, WEB3, and cryptocurrency. The congressmen have also been looking for new laws to regulate the crypto market. Since the Senate has already passed a similar crypto regulatory framework in December, the bill will return to Congress with modifications. 

Also Read: Brazil Senate Approves Regulation Bill for Crypto Transactions

New Crypto Laws May Make Paraguay a Global Centre for Miners

Once the Senate approves the laws, it will finally move to President Mario Abdo Benitez. If the legislation is adopted as a new crypto law, it will apply to any corporate or individual involved in the commercialization, custody, production, transfer, mining, trading, or administration of crypto and other related activities. 

The law provides legal and financial assurances to individuals and businesses, along with strict regulations on electricity taxation. Article 11 of the bill states that crypto mining is an innovative industrial activity. Thereafter, that benefits all incentives and mechanisms foreseen in the national regulation.

In particular, the bills mainly aim to make Paraguay a global centre for miners. The low electricity costs in the country are in favour of the law as Paraguay offers the lowest electricity rate in Latin America. 

Also Read: The Argument for Cryptocurrency to be Included in 401(k) Plans

Paraguay to Adopt Crypto as a Legal Tender?

Today Paraguay actively explores the laws of cryptocurrencies and digital assets. In June 2021, El Salvador took a revolutionary step by legalizing Bitcoin as a legitimate tender. Many other countries like Uruguay, Panama, Argentina, and Brazil are discussing the current crypto regulations. 

In March, a poll conducted by a worldwide research firm placed Paraguay among the top three countries. However, this was under the prediction to be the next to adopt crypto as a legal tender.

In Conclusion

At present, there are no updates regarding Paraguay adopting bitcoins as a legal tender. However, the new laws may make a way for such positive news. Tadeo Rajos, a congressman has opposed the legislation reporting that the budget committee has voted against the project. He argues that the positive outcomes of the law were minimal in comparison to the energy consumption for crypto mining. However, nothing is for sure until the law surpasses the Senator.