Following El Salvador’s move to become the first country in the world to recognize Bitcoin as legal tender, a Paraguayan congressman has announced plans to do the same in the South American nation next month, according to a report by La Nación.

Fast facts:

  • Deputy Carlos Antonio Rejala Helman of the Hagamos Party is preparing a bill to introduce in congress that would establish Bitcoin as legal tender and attempt to make Paraguay a hub for cryptocurrency investment and development.
  • Rejala was quoted by La Nación as saying: “Since we announced that we are working on a bill that legalizes in Paraguay the use of digital assets, better known as digital currencies, or its most popular version, Bitcoin, as legal tender for any type of commercial transaction, various Paraguayan companies have already joined and taken a step forward towards the new era of transactions, which makes us proud.”
  • CEO Juanjo Benitez Rickmann recently tweeted that he was working with Rejala to introduce the bill and assist Paraguay’s adoption of the cryptocurrency, making use of the country’s cheap and renewable electricity for mining. Thanks mainly to Paraguay’s hydroelectric power generation, 100% of its electricity demand is met using renewable energy sources, making the country the sixth-largest energy exporter in the world in 2019.
  • El Salvador’s progress to full recognition of Bitcoin as legal tender is already encountering obstacles. Confusion arose recently over which government department would determine whether salaries can be paid in Bitcoin, and the World Bank has refused to help the country with technical elements of the rollout.