Paraguay flag
Source: getty

Paraguay Is the Next Country to Propose Bitcoin as Legal Currency

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Jun. 25 2021, Published 1:54 p.m. ET

Another Latin American country has joined El Salvador in proposing to make Bitcoin legal tender. On June 24, Paraguay announced a bill in support of integrating cryptocurrencies into its economic platform.

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The bill was confirmed when a member of parliament, Carlitos Rejala, who has been a supporter of Bitcoin, tweeted the news. According to another tweet by Rejala, parliament will vote in July on whether to adopt Bitcoin officially. If Paraguay officially makes Bitcoin legal tender, it would join El Salvador as the only countries to do so.

paraguaybitcoin
Source: carlitos rejala twitter
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Paraguay isn’t just looking to make Bitcoin legal tender.

While another country adopting Bitcoin as legal tender would be a major step for cryptocurrencies, Paraguay has more plans.

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Paraguay generates an enormous amount of renewable energy. The country exports about 90 percent of the renewable energy to neighboring countries like Brazil and Argentina. The cryptocurrency industry's key challenges right now are energy use and the environmental impact. Paraguay is looking to fortify its economy by attracting crypto miners facing pushback by their respective governments.

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Earlier in June, Rejala unveiled his plan for expanded cryptocurrency use in Paraguay. He said that he was working with “the Paraguayan crypto community in order for Paraguay to become a hub for the crypto investors of the world and subsequently to be placed among the ones on the cutting edge of digital technology.”

Juanjo Benitez Rickmann, the CEO of crypto exchange Bitcoin.com.py, confirmed on Twitter that he was working with Rejala "to introduce a project in Congress so that Paraguay becomes a crypto-friendly country for worldwide crypto investors, taking advantage of the renewable and inexpensive energy provided by hydroelectrics.”

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The American University of Paraguay will start accepting Bitcoin as tuition payments.

On June 24, The American University of Paraguay tweeted that it will start accepting tuition payments in Bitcoin on August 1.

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"From August 1, you will be able to pay all your tuition and fees with cryptocurrency," a translated version of the tweet read. "We take an important step towards innovation."

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The American University of Paraguay is one of the country’s most prominent higher education institutions. The university hasn't announced its plans on accepting or holding the BTC it receives. The university also hasn't indicated any plans to liquidate the Bitcoin. If the bill proposed by parliament passes, it might not need to liquidate its Bitcoin to reinvest the capital back into the university.

Paraguay and El Salvador embrace Bitcoin despite the growing global crackdown.

While El Salvador and Paraguay’s adoption of Bitcoin into their economic folds bodes well for crypto enthusiasts and Bitcoin “hodlers,” a growing number of countries are taking an opposite position.

Recently, China reinforced its position on cryptocurrencies and craked down on mining operations and crypto exchanges. A significant amount of cryptocurrencies is mined in China, and the bans by the government have been attributed as a major cause for the market’s decline in recent weeks. 

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