After El Salvador and the Central African Republic (CAR) approved Bitcoin as legal tender, other nations hurrying to catch up and put in place regulations for this unique asset class. Paraguay’s Chamber of Deputies approved a bill regulating crypto mining and trading with a 40-12 vote.
2021 has been the year with the most crypto adoption. However, 2022 seems like it will have more impact on the world in terms of Bitcoin and blockchain adoption.
Paraguay Adopts Crypto Bill In Majority Vote
In a special session, the deputies voted by a margin of 40 to 12 in support of passing the draft.
The bill has been in the Senate debate since July 2021 and it now awaits ratification before being passed on to President Mario Abdo Benítez for signing. The bill proposes control for crypto exchanges and mining firms.
This bill, once signed into law, aims to control activities involving digital assets such as crypto trading and mining. The main goal of the bill is to commercialize crypto and provide legal, financial, and fiscal security to traders and investors.
Additionally, the new law requires that crypto exchanges be registered with the anti-money-laundering agency of Paraguay and will fall under “virtual asset service providers.”
Following this adoption, Paraguay will become a global hub for crypto miners and investors as well. Paraguay is a mining haven for crypto miners due to its cheap electricity. In Paraguay, electricity costs $0.05 per kW/h. This is the lowest rate in all of Latin America.
Conclusion
Crypto adoption is rising fast globally. Nations are embracing crypto and blockchain technology. As the world races towards 5G and 6G tech, nations and companies must align themselves. The nations that do this early will be the ones that make the most profit in the future. Kudos Paraguay!
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.
