Will Paraguay Be Making Bitcoin Legal Tender?

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It wasn’t many months ago that El Salvador introduced a bill to make Bitcoin a legal tender. Now, the next nation in South America to propose the same bill is Paraguay. The proposal was confirmed by Carlitos Rejala, a member of parliament, who has always expressed strong support for the cryptocurrency. If the bill comes to fruition, Paraguay will become the second nation to make the cryptocurrency an official currency.

Rejala is of the opinion that the adoption of Bitcoin as a legal tender will open several growth opportunities for the upcoming generation. The news of the proposal comes at a time when the prices of Bitcoin have been plummeting due to the crackdown on crypto-mining activities in China. The South American nations are somewhat skewed towards the adoption of Bitcoin because they believe the cryptocurrency would give them an edge over other countries and boost their financial powers.

However, the adoption process won’t be as smooth as it seems. Several economic concerns were raised by the International Monetary Fund (IMF). Also, the World Bank, as sources claim, has denied Paraguay any assistance to bring Bitcoin into the country’s monetary system.

Owing to the widespread availability of renewable energy in Paraguay, the country believes that it has the potential to become a crypto hub. Currently, several stakeholders are working with Rejala to propose bills that will position Paraguay as a notable Bitcoin hub. However, despite its possible economic benefits, the issues related to bitcoin mining and the impact it has on the environment continue to loom large. Let’s see what turn the bill takes in Paraguay.

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