Paraguay Congress Debates to Make Bitcoin as legal tender

Paraguay’s Congress is currently scrutinizing three bills concerning the regulation and management of cryptocurrencies within the nation. These legislative proposals, originating from both the Senate and Chamber of Deputies, aim to establish a regulatory framework for the digital currency and crypto mining industries. 

In the Chamber of Deputies, one bill by Derlis Rodríguez advocates for the introduction of a digital version of the national currency, the guaraní, and the acceptance of Bitcoin as legal tender. This proposal highlights the need for stringent regulations to mitigate risks like money laundering and tax evasion associated with crypto transactions.

Details of Proposed Regulations

One Senate bill proposes a temporary 180-day ban on crypto-related activities, including the creation, storage, and commercialization of virtual assets, pending the development of appropriate regulations.

The Senate’s temporary prohibition intends to address urgent issues such as illicit electrical connections by crypto mining operations, which have reportedly led to significant electricity losses. This measure also seeks to prevent unregulated activities that could facilitate financial crimes. 

Another legislative proposal by Deputy Yamil Esgaib emphasizes the need for local control over the cryptocurrency industry. It requires all individuals and entities involved in the intermediation, marketing, exchange, or storage of virtual assets in Paraguay to register and comply with national regulations. 

The outcome of these bills could influence global practices in the digital economy. As the country harnesses its substantial renewable energy resources, it stands at a crossroads that could stimulate its digital economic sector.

Also Read: Paraguay Faces $200M Annual Loss with Bitcoin Mining Ban

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