Paraguayan MP Carlitos Rejala, a well-known Bitcoin supporter, said he is ready to submit a bill aimed at regulating cryptocurrency in the country on July 14. Emphasizing the urgency of legislators in formulating a coherent digital asset strategy for their country. This bill planned to adopt as part of the concept of digitalization of the economy. The parliamentarian supported by Senator Fernando Silva Facetti.
Rejala shared the good news with the readers of his twitter. He said it would be “something big” and a huge surprise awaits the whole world.
The member of Congress also noted that the initiative found support among a number of very important businesses in Paraguay.
At the end of June, the Paraguayan Bitcoin enthusiast said that the country should follow the example of El Salvador and quickly introduce Bitcoin. Rejala believes that the bill will help the country to improve its position, laying the foundation for the next generations. As a sign of support for Bitcoin, a member of the Parliament of Paraguay changed his Twitter avatar. Since then and to this day, his portrait has been adorned with laser eyes.
Rejala ‘s past statements initially prompted speculation that he would insist that Paraguay follow in El Salvador’s footsteps – that is, create a law declaring bitcoin a form of legal tender. However, he later clarified those comments, saying that his bill would focus on regulation.
On the issue of applying a similar approach to El Salvador, Rejala said:
“This is a digital asset bill, and it differs from El Salvador’s bill in that they accept it as legal currency, and it will not be possible in Paraguay to do something like that”.
As such, it is unlikely that the bill will include provisions to accept Bitcoin as legal tender.
Will the new bill have a positive impact on Paraguay?
Paraguay is an agricultural state in South America located between Argentina, Brazil and Bolivia. Its population is 7 million. The official currency of the country is the Paraguayan Guarani. 1 Paraguayan Guarani equals $ 0.00015. So, the spread of Bitcoin in the country can have a positive effect on the country’s economy.
On June 9, El Salvador became the first country in the world to accept Bitcoin as its official currency. A day later, it was announced that renewable energy from active volcanoes would be used to mine Bitcoin. President of Salvador Nayib Bukele, who is a big fan of the first cryptocurrency, is serious about pushing his people into a bright cryptocurrency future, despite the mixed reactions of international organizations and regulators.
El Salvador has already faced a problem as the World Bank has refused to help the country with its implementation. And experts at JPMorgan doubted that the decision would bring tangible economic benefits to the Central American country.
Johns Hopkins University professor Steve Hanke said that the adoption of the first cryptocurrency could bring down the economy.
In general, many experts agreed that this could equally stimulate both the inflow of investments to El Salvador and the outflow of capital.
However, Paraguay is on its way, which is likely to have a positive effect on the country’s economy, as the authorities are focused on regulation, and only want Paraguayans or foreigners to be able to operate crypto assets legally.