Paraguay Moves To Make Bitcoin Legal Tender
Paraguay intends to fill the shoes of El Salvador as plans are in motion to legalize Bitcoin. El Salvador, a country in the Latin American region, became the first sovereign state to formally legalize bitcoin and adopt it as an official currency. The reactions that greeted this move were wild. Speculations were not left out as well as anti-crypto folks considered the move a risky one owing to the volatility of Bitcoin.
El Salvador’s decision served as a catalyst for Paraguay and other countries in the Latin American region with respect to Bitcoin legalization. Brazil, Mexico, Argentina expressed their solidarity for El Salvador’s Bitcoin move earlier this month. Countries in the region have been the hardest hit by inflation and currency devaluation. Venezuela and Argentina experience hyperinflation almost annually. In fact, Argentina has had to change her currency five times due to devaluation. Hence, it is no surprise that they are looking to Bitcoin to hedge against hyperinflation and devaluation.
Paraguay to Submit Bitcoin Bill in July
Paraguay’s National Deputy, Carlitos Rejala had been one of the lawmakers who hailed El Salvador’s impressive move as being in the right direction and also hinted at championing a similar cause in Paraguay. He said in a Tweet earlier this month. On Thursday, he eventually announced in another Tweet that he would tender a Bitcoin bill in July. Before Bitcoin was legalized in El Salvador, the bill had polled 84 out of 92 votes in the Congress. Observers believe a similar thing would occur in Paraguay and the bill would be passed by a vast majority.
National Deputy Rejala had enlisted his support for Bitcoin. He had updated his profile picture to one with the notable red laser eyes which signifies the optimism by crypto enthusiasts that the price of the top crypto asset will get to $100,000. The value of the Bitcoin had touched $64,000 earlier in May before spiraling downwards to $30,000. Many Bitcoin proponents are very much bullish despite the recent dip.
El Salvador’s Request for Support Gets Turned Down By IMF And World Bank
The International Monetary Fund (IMF), and the World Bank have refused to support El Salvador’s decision, saying it bears so many risks. President Bukele had planned to meet with both organizations after the landmark move. However, his talks with them did not yield any results. A spokesperson in IMF had regarded the move as an untimely one considering the $1 billion loan the Latin American country plans to collect to hedge against its budget deficit resulting from the COVID-19 pandemic. The IMF also expressed worry over the economic, financial and legal implications of the Bitcoin adoption.
In the same vein, the World Bank had turned down the country’s request for technical support on Bitcoin adoption, citing accountability and environmental issues as the reasons for its disapproval. Meanwhile, American Broadcaster and Film-maker, Max Keiser who is also a crypto proponent berated the IMF’s disapproval and hailed Paraguay’s proposed Bitcoin move.
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