Weeks after El-Salvador set a national record as the first nation to give Bitcoin highly revered legal tender status (quotation BTC), rumors flooded the crypto space after an announcement by the national legislator that Paraguay is next in line to follow suit.
The deputy leader of the Hagamos party and Paraguayan lawmaker, Carlos Rajala, who made the announcement was quoted earlier:
"Since we announced that we are working on a bill that would legalize in Paraguay the use of digital assets, better known as digital currencies, or its most popular version, Bitcoin, as legal tender for any type of commercial transaction. , several Paraguayan companies have already joined and made a step towards the new era of transactions, which makes us proud ”.
Rajala came out to state that his statement was clearly misinterpreted as adopting Bitcoin as the second national currency, which is nowhere near the plans of the Paraguayan government.
Rajala revealed to Reuters last weekend that the nation has no such plans and the bill is only intended to help reshape Paraguay's financial sector to be ready to handle the growing demand for digital currency transactions.
"It's a digital asset bill and it differs from El Salvador's because they're taking it as legal currency, and in Paraguay it will be impossible to do that."
A growing South American trend
After the announcement of Nayib Bukele, the president of El Salvador, Paraguay was counted among the five South American nations ready to make the next Bitcoin-friendly law. Along with Brazil, Honduras, Argentina and Panama, Paraguay's favorable crypto actions have led experts within the crypto space to advertise the region as the next crypto stronghold after China's mining crackdown.
The regulatory phase of Bitcoin
Paraguay's decision to structure and regulate its crypto assets is the latest in a series of regulatory waves sweeping the crypto space. Globally, the World Bank is fixated on the dilemma of helping El Salvador create a seamless international monetary policy for its digital asset.
There are discussions in the UK about installing supervisory legislation for all established and nascent coins. The United States, after a long and heated exchange with digital asset company Ripple XRP, is formally proposing two new invoices to properly define the trillion dollar industry.
These are all signs of maturity for the crypto space, and Bitcoin is leading the charge in several ways. And what do you think of Paraguay's move? Is it moving in the right direction? Let us know in the comments below.