Paraguay’s crypto-entrepreneurs participate: is a Bitcoin law in the cards?

[ad_1]

When El Salvador announced that Bitcoin would be legal tender in its country, the clock started to tick. Which country, if any, would follow in their footsteps? Paraguay was one of the more likely candidates, and MP Carlos Rejalas’s tweet and laser eyes seemed to indicate there was a possibility. However, things cooled down fairly quickly and little came out of the initial excitement.

Related reading | Bitcoin adoption: why Paraguay could follow in El Salvador’s footsteps

The question remains: is Paraguay a likely candidate to include Bitcoin in its balance sheet? Is Bitcoin as legal tender a real possibility for Paraguayans? It’s such a hot topic that the Talent Land 2021 conference in Jalisco, Mexico hosted a panel titled Bitcoin in Paraguay. In it, crypto entrepreneurs across the country explored the issue.

Well come back to what they said, but first

What did Carlos Rejala mean with July we legislate?

This Paraguayan deputy woke up Bitcoin cyberfrelons with this tweet:

It’s July Paraguay we are legislating! #Bitcoin https://t.co/4e4wH7uDrl

– Carlitos Rejala (@carlitosrejala) June 17, 2021

Unfortunately, Rejala was not referring to a chess move on the scale of El Salvador. He does not believe that this move is possible in Paraguay either. When asked by Reuters about it, he explained:

“It’s a digital asset bill and it differs from El Salvador because they take it as legal tender and in Paraguay it will be impossible to do something like that.”

Clear regulations are a lot and would help to clean up the environment. But, the fact that a Bitcoin law appears to be out of the question is disappointing to say the least. And Arapy Networks Joaquin Morinigo seems to agree and gives these facts as possible reasons:

In Paraguay, banks don’t allow exchanges to open accounts, they don’t allow their customers to buy cryptocurrencies with their cards, and they think you’re laundering money if you deposit any fiat that you have. earned with cryptocurrencies.

– Joaquin Morinigo CriptoPy (@criptoboi) June 24, 2021

Guaran, Paraguay’s currency, is the region’s most stable Fiat currency and the anti-crypto banking lobby is in full force. While the whole world needs Bitcoin, it doesn’t appear to be fertile ground for mass adoption.

BTC price chart on Bitbay for 07/09/2021 | Source: BTC / USD on TradingView.com What do Paraguayan entrepreneurs think about the situation?

Even though the Arapy network is not a Bitcoin-only project, its three founders hosted the Bitcoin panel in Paraguay. Previously mentioned Jorge Valenzuela, Jorge Alcaraz and Joaquin Morinigo According to Criptonoticias, the general feeling was that they thought the country could be the second to incorporate Bitcoin, but the law is just rumor and hope.

Related reading | Domino effect: which countries will adopt Bitcoin next?

They paint the portrait of a Paraguay in which the Central Bank regularly warns the population about the risk posed by cryptocurrencies. At the same time, the government has started funding blockchain projects. So an outright ban also seems to be out of the question. The other determining factor is informal trade. Those who make a living this way do not have access to banking services. It’s a giant adoption niche for cryptocurrencies and blockchain.

According to Valenzuela:

The conditions are right for Paraguay to raise its potential. The climate is ideal, it is a fairly productive area, we have a lot of energy, a lot of young people, and a fairly fertile ground. In addition, were positioned in the heart of Latin America. Paraguay could be a strategic technological hub for the region.

And speaking of a lot of energy, Morinigo dropped a crucial piece of information:

Companies from all over the world decide to come to Paraguay. For example, one of the biggest farms (Bitcoin mining) in the world, owned by a Chinese company, and a Korean company is expected to come.

Is excess energy a big factor in this whole situation?

To end it all, Alcaraz doubled down on the idea, we have practically the most energy available per capita in the world. And seemed to advise the government, we could take that fact and use it as an impetus to get people to embrace Bitcoin.

And that’s where Paraguay is right now.

Image presented by Diego Allen on Unsplash – Charts by TradingView

[ad_2]