Cryptocurrency legalization may soon be formalized in Paraguay

Paraguay could be the next country to legalize cryptocurrencies. The bill must be approved by the Senate only before the President signs it.

Paraguay has long been a top contender to be the next country to make cryptocurrency legal tender. The operation may not be on the agenda (yet), but today Paraguay took an important step towards the full legalization of cryptocurrencies. Indeed, Congress has just approved a bill to mine and exchange cryptocurrencies.

Paraguay may be the next country to legalize cryptocurrencies

The Chamber of Deputies voted 40 to 12 in favor of this bill, introduced by the Senate in July 2021. It aims to regulate cryptocurrency-related commercial activities, including trading, administration, and mining, under the coordination and supervision of the Ministry of Industry. and Trading (MIC) in coordination with the National Securities Commission, the Secretariat for the Prevention of Money or Asset Laundering, the National Electricity Administration and the Ministry of Finance. The bill must now be approved by the Senate before the president can sign it into law.

This would make Paraguay an important region for mining, as the country already offers the cheapest electricity in Latin America at just 5 cents per kilowatt hour. Crypto service providers and miners can obtain a five-year license from MIC.

The bill must be approved by the Senate only before the President signs it.

At the same time, opponents of cryptography are also widely represented in the country. The Central Bank of Paraguay (BCP) commented, for example, last March that the benefits of digital asset regulation do not necessarily outweigh the disadvantages, such as “electricity consumption, loss of reputation and costs to the financial system.”In addition to the BCP, MP Basilio Nunez recalled that cryptocurrency “favors organized crime”and MP Tadeo Rojas added that the creation of jobs for cryptocurrency mining did not compensate for the increase in mining energy consumption.

According to a report by Statista, in 2022, half of the fintech companies in Paraguay have allowed digital payments for businesses and individuals, and this number is growing steadily.