Paraguay joins a growing fraction of Bitcoin believers in Latin America, as emerging markets worldwide could be the next big frontier for cryptocurrency usage and mining.
The South American country is set to unveil a crypto bill following Bitcoin’s success story in El Salvador, said Carlitos Antonio Rejala Helman, a deputy of the Nation and member of Congress.
He wrote on Twitter this week, “This is Paraguay. In July we legislate! #Bitcoin.”
The comment followed a tweet by Paraguay’s largest entertainment company, which claimed will accept Bitcoin, Ethereum, Shiba Inu, and Chiliz since next month. Paraguayan congressman did not provide any additional information, but before he hinted that officials are possibly working with PayPal on a Bitcoin-related project for the country.
“As I was saying a long time ago, our country needs to advance hand in hand with the new generation. The moment has come, our moment. This week we start with an important project to innovate Paraguay in front of the world!,” he said on Twitter at the time, adding:
“This week we start with an important project to innovate Paraguay in front of the world! The real one to the moon #btc & #paypal”.
The region suffers from an economic recession and side-effects of dollar printing in the U.S. So officials of Latin American countries pin their hopes on Bitcoin to offset some of those drawbacks, joining the group of first nations in the world going to legalize the cryptocurrency.
“Other countries will follow El Salvador’s lead for two main reasons, making bitcoin legal tender will attract Bitcoin entrepreneurs and ease the burden of sending money internationally,” told Insider Edward Moya, a senior market analyst at OANDA.
Since El Salvador’s Congress approved on June 9 a law that made it the first country to accept Bitcoin as legal tender along with the US dollar, many other politicians in emerging markets have said that their own countries should follow the case.
Gabriel Silva, a congressman from Panama, stated his country could not afford to be left behind and called for broader adoption of crypto to attract technological innovation and entrepreneurship to the country.
Brazilian politician Gilson Marques and the Argentinian Francisco Sánchez added to their Twitter avatars laser eyes, a symbol of Bitcoin bulls.
According to CryptoSlate’s reports, Mexican senators, Panamanian officials, and other high-level officers in Brazil, Columbia, and Argentina are making moves for the quick inclusion and adoption of cryptocurrencies.
Central banks around the world are considering launching their own digital currencies (CBDCs) that would be centrally managed and regulated, unlike Bitcoin. The Federal Reserve and European Central Bank are still in the very early stages of looking into digital currencies, while many central banks of emerging-market are turning toward Bitcoin.
As the popularity of cryptocurrencies, like Bitcoin and Ether, rose over the past years, they became a means of payment for goods and services.
For example, El Zonte, a whole town in El Salvador, also known as ‘Bitcoin Beach,’ was already running on crypto. Soon the whole country could be working in similar ways, and other emerging markets countries could join as well.
However, El Salvador’s move has been received warily by regulators in developed countries. The World Bank rejected El Salvador’s request to help with Bitcoin implementation over environmental and transparency risks.