El Salvador and the Central African Republic were the first nations to recognise Bitcoin (BTC) as legal cash, and now Paraguay is following suit.
In fact, the Chamber of Deputies in Paraguay has passed a measure regulating cryptocurrency mining and trade, with a majority of 40-12 in favour. On May 25, YouTube broadcast the full session live.
The measure will now return to the Senate after the Chamber of Deputies ratified this legal framework in December 2021. The law will then be sent to the executive arm of government for final approval once it has been passed by the Senate.
This bill’s specific goal is to turn Paraguay into a mining centre for foreign companies because of the country’s cheap power rates, which are the lowest in Latin America at roughly five cents per kilowatt-hour.
Individual and corporate miners will be forced to apply for an industrial power consumption authorization, which is followed by a licencing application if the legislation is enacted into law.
In addition, the legislation proposes the establishment of a register for anybody or any legal organisation interested in participating in crypto trading or providing custody services for third parties. It would seem, though, that the idea of a trade is still lacking.
Despite this, the legislation was met with strong resistance. Congressman Tadeo Rojas claimed in opposition to the bill that the budget committee of the Chamber of Deputies had also advised against it. He went on to say that the impact on employment creation was minimal compared to the amount of energy needed for crypto mining.
With Sebastián Garcia, the measure would create limits in order to reconcile energy usage with supply, he said in the House of Representatives
The CoinMarketCap community anticipated that Paraguay, Venezuela, and Anguilla will be the next three nations to embrace crypto as legal cash, according to Finbold in late March.