Wednesday, October 5, 2022

Paraguay Receives Crypto Bill Approval Amidst Oppositions

South American landlocked country, Paraguay has finally received approval on its crypto bill. The bill, which is seeking to address the regulation and adoption of digital assets, was previously rejected by the central bank and budget commission of the country.

Without accepting defeat, the bill was modified and drafted again on Wednesday. And this time, it managed to receive 40 votes from the 52 participating Congress members. The drafted bill includes legislation in the favour of cryptocurrency mining, trading, licensing and other crypto investments.

Paraguay Approves Crypto Bill

Following the approval from the Paraguayan Congress, the bill will now be pushed to the Senate for ratification. Upon the consent of the Senate, the bill may then further move to the Presidency.

Meanwhile, the proposed bill does not include creating a central bank digital currency (CBDC) or making it a legal tender. Instead, it aims at regulating the commercialization of digital assets in the country. Additionally, the bill also seeks to monitor and supervise the operations of users, traders and investors.

The low cost of electricity and the reduced taxation rate has been a major influence on the fast-growing pace of crypto in Paraguay. But some members of Congress think that the regulation will in turn cause a hike in the cost of electricity.

Meanwhile, the government has promised that the adoption of the bill will ensure a restriction on the amount of electricity expended. Users and investors’ rights will also be protected.

Few Congress members think that the disadvantages of the regulation will far outweigh the benefit. They fear that the market may be affected and the country might lose its reputation seeing that they wish to get involved with a ‘high-risk asset’.

Crypto Adoption Skyrocket in South America

Other South American countries are also formulating schemes to upgrade their crypto operations. Last month, Brazil experienced a leap as the Senate approved the bill passed for crypto adoption. However, the country is yet to decide on the agency that will control and monitor the crypto space. From the look of things, that would be anyone of the Securities and Exchange Commission, Brazil’s Apex bank or a new agency entirely.

Before that, Brazil had selected about nine projects to handle its central bank digital currency (CBDC) development. And South America is generally moving with the trend of cryptocurrency.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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