The measure in Paraguay was adopted with changes by the country’s Chamber of Deputies. As the measure gets closer to becoming law, it will be sent back to the Senate.
Paraguay is the newest country to join the Web3, blockchain, and cryptocurrency revolution. Following the adoption of bitcoin as legal cash in El Salvador and the Central African Republic, Paraguay is moving into the field to stay up and provide mechanisms to govern the asset class.
Cryptocurrency Trading and Mining Regulation
With a vote of 40-12 on Wednesday, Paraguay’s Chamber of Deputies (second chamber of Congress) adopted a law regulating cryptocurrency mining and trade. Similar legislation was approved by the country’s Senate in December; the measure is now expected to return to that body with changes made by the Chamber of Deputies.
If the Senate adopts the amendments, the bill will be sent to the White House, which has yet to say whether it would sign or veto the bill. On May 25, the whole bill session was aired live on YouTube.
Any individual or corporate miner may request for authorisation for industrial power usage if the legislation is formally enacted as law. Miner, on the other hand, would have to seek for a license in order to do so.
Furthermore, the legislation envisions the formation of a register for anybody or any legal organization interested in crypto trading or third-party custody. The idea of trade, on the other hand, is still missing.
The law aspires to make Paraguay a worldwide mining center in particular. Furthermore, Paraguay’s cheap power rates, which are under five cents per kilowatt-hour, make this a viable option.
Is it possible for Paraguay to adopt Bitcoin as a legal tender?
According to a CoinMarketCap survey conducted in late March, Paraguay might be the first of the top three nations anticipated by the community to embrace cryptocurrency as legal cash, followed by Venezuela and Anguilla.
While there has been no news on the country accepting BTC as legal cash, the progress in the field has been excellent. The law, however, has been met with fierce criticism from the left.
Congressman Tadeo Rojas also opposed the bill, claiming that the budget committee of the Chamber of Deputies had advised against it. Furthermore, he said that the beneficial impact on employment creation was minor in comparison to the energy consumption needed by crypto mining.
However, Congressman Sebastián Garca came out in support of the measure, claiming that it establishes limitations to ensure that energy use is in accordance with supply.