The appeal of Bitcoin is spreading across Latin America, Paraguay is considering another bill for a regulatory framework in the Bitcoin mining license process.
The Paraguayan Chamber of Deputies is currently debating a bill that would establish cryptocurrency rules. The use and mining of digital assets within that jurisdiction would be formally recognized and authorized under those criteria.
The proposal was co-written by Congressmen Silva Facetti and Carlitos Rejala, and a translated version may be found here.
On July 15th, after submitting the draft legislation to fellow members, Congressman Rejala sent a message to his Twitter followers. The following is a translation of the tweet:
“As we had already announced, yesterday we presented the “Bitcoin Law” project. This bill provides a clear regulatory framework on the cryptocurrency generation industry attracting foreign investment in Paraguay.” This action follows El Salvador’s adoption of Bitcoin last month as a sovereign currency in that country.
That project was spearheaded by Salvadorian President Nayib Bukele, who aimed to improve economic opportunities for the country’s 70% of the people, who do not have access to banking or financial services.
The legislative approaches to cryptocurrencies in the two countries differ in various ways, including:
- The bill in Paraguay is substantially longer, with 22 articles, and has far more details than the law in El Salvador.
- The proposal from Paraguay aims to create a licensing system for Bitcoin mining.
- It would also provide regulatory safeguards to protect bitcoin investors, which are now lacking in other jurisdictions.
- The most notable distinction is that the Paraguayan measure does not confer legal money status to Bitcoin or any other cryptocurrency; digital assets will be designated as property pending approval.
Congressman Rejala tweeted,
“After this bill passes, Paraguay will position itself in this competitive market, and aspires to lead in sustainable Bitcoin mining.”
On the other hand,
- El Salvador and Paraguay are both embarking on significant economic experiments that are being opposed by several non-governmental institutions, including the International Monetary Fund and the World Bank.
- Both global financing institutions might withhold essential monetary support in the short term to quietly destroy either economy.
- If either country fails, governments will almost certainly seek to implement even stricter regulatory limitations.