After El Salvador decided to adopt Bitcoin Law, there have been a number of other countries within the region of Latin America and South America thought to begin toying with the idea whether to accept crypto as legal industry or not. Paraguay is one of them.
Cuba has opted to recognise and regulate the digital coins, although Mexico has come at a crossroads as financial institutions have already revealed their displeasure at the idea and have voiced strong opinions. However, head further south in the world and it would seem that there is strong interest in following the landmark decision made by the small nation.
Paraguay has shown interest in adopting Bitcoin Law
Paraguay is one country that could potentially be looking to bring in their own Bitcoin Law in the near future, with strong support for cryptocurrency to be made available as legal tender having been provided by influential figures within the South American nation; specifically Congressman Carlitos Rejala. He has shown his support for digital currency on social media, whilst he has been crafting legislation in order to allow Bitcoin to be integrated into the country’s economy and is of the belief that the bill has a good chance of being accepted.
It would seem that legislating crypto would be a favourable move for Paraguay and one that would be met with a lot of delight. One of the biggest entertainment companies in the country, Grupo Cinco, has already started to accept crypto payments for the events that they put on and there is every chance that adoption of the digital coins could be popular as it is understood that 80% of their customers are between the ages of 18 and 25, whilst 60% of the entire population is under 30 years old.
The potential high adoption rate that could be experienced could then have a boom on the gambling industry, with the sector already experiencing high numbers of players enjoying gambling at a live dealer crypto casino.
This could mean that a boom in online casino gambling with live dealers could arise, as even more bettors are continuing to be able to enjoy the best betting experiences that they can, all whilst being able to enjoy them conveniently.
Cryptocurrency could be regulated as an industry
Rejala has admitted that he would find it difficult to see the virtual currency be used as a form of legal tender alongside Guarani, but there is every chance that it could be effective in bringing the nation income as an industry. This is due to their position as one of the largest sources of renewable energy within the region, which has already attracted a number of crypto miners, especially following China’s decision to ban it thus making them seek alternatives.
Bitcoin miners already seeking business opportunities
The fact that companies are already exploring potential opportunities within the country could provide the nation with a huge boost economically, as they are looking to invest millions of dollars into it, which could also create new employment and potentially place them as a top export. Although there are concerns about the impact that mining has on the environment, Paraguay has the hydroelectric dams of Itaipú (Paraguay-Brazil) and the Yacyretá (Paraguay-Argentina), which produce 8,500 MW (megawatts) of power; although it should be known that only 3,300 MW of this power are used as resources, so there is a surplus.
However, on average, each firm in China would require at least 100 MW to be able to operate, which would then translate into an investment that would be around USD$200 million. Therefore, by introducing the bill into law, Paraguay could stand to receive billions of dollars in investment. There is no doubt that Paraguay has an excellent opportunity to capitalise on cryptocurrency as they provide a plethora of benefits to miners, whilst the country could, in turn, enjoy economic prosperity by adopting Bitcoin Law.
The post Is Paraguay set to embrace crypto and adopt it as legal currency? appeared first on The Cryptonomist.