The influence of cryptocurrency appears to be getting stronger by the day. With that comes news of a recent development in Paraguay, a Latin America country with already a bit of a backstory in terms of mining and cryptocurrency.
Paraguay, however, currently lacks a regulatory framework for crypto. Carlos Rejala, a Paraguayan congressman, hopes to change all of that through legislation he’s proposed which will help attract international mining companies and other crypto businesses to the country.
All this after El Salvador’s parliament recently approved Bitcoin as legal tender leaving many wondering whether Paraguay is next up in the move towards mass crypto adoption in Latin America. Here’s what we’re learning:
Carlos Rejala: The Mind Behind It All
Rejala changed his Twitter avatar to a photo of himself with laser eyes. He says that Paraguay needs to advance hand in hand with the new generation. In his opinion, the moment has come— the moment he and many have been waiting for.
He remarked that the promising crypto developments that recently took place in El Salvador prompted him not to be afraid, believing that this can be real in his country. He now believes that this is a chance for a group of like-minded people to innovate Paraguay in front of the world.
Paraguay: Cheap Energy And Unlimited Potential
Rejala also discussed what the whole project is about. He said it would allow companies in Paraguay to finance their operations with crypto. Likewise, they will be able to remit dividends abroad and capitalize their profits in crypto in local banks.
He goes on to note that one of the points of attraction when it comes to mining companies in Paraguay is the affordability of electricity, with a kilowatt-hour rate that’s the lowest in the region. Moreover, most of its electricity production comes from hydroelectric sources that are able to provide renewable energy for crypto mining.
Paraguay does not use all the energy that it produces. The Itati hydroelectric plant is shared between Paraguay and Brazil. Paraguay only takes 26% of the 6,067 megawatts it is entitled to monthly, leaving the possibility that this surplus energy could be used for mining.
Similarly, Rejala says that, unlike China, the country would not ban crypto mining at all. He says that since it is renewable, non-polluting energy, the environmental impact will be minimal.
Can Paraguay Become The Center Of Crypto In Latin America?
Through these developments, Paraguay hopes to become the crypto center of activity for Latin America, a model for other countries in the region. If the legislation gets approved, Rejala will present a second one promoting the use of Bitcoin as legal tender similar to what’s now in place in El Salvador.
But his first move is that he wants to make Paraguay a blockchain-friendly country. And in fact, they are already quite attractive for many crypto projects. For example, Paraguay offers no restrictions on foreign capital flows and dividend payments.
For now, Rejala is seeking to attract support to get 41 votes in the chamber of deputies, and then pass the bill to the Senate chamber. If approved in both, it will then have to be enacted by the President, who has the power to issue a veto.
